:00:02. > :00:12.will eventually reduce the cost of meat production.
:00:12. > :00:26.
:00:26. > :00:32.Another record high. Some global indices hit dizzy new heights, but
:00:32. > :00:37.the stock markets of Brazil and Russia failed to join the party.
:00:37. > :00:39.The sick man in Europe. Crucial medicines run short in Greece.
:00:39. > :00:49.Pharmaceutical companies blamed the government's outdated pricing
:00:49. > :00:51.
:00:51. > :00:55.system. A very warm welcome to World
:00:55. > :01:00.Business Report. In just a minute, we will go to Athens to hear about
:01:00. > :01:04.the mounting health crisis in Greece, the first let's talk some
:01:04. > :01:09.markets. Record highs, at that is where we are expect the markets in
:01:09. > :01:12.America to start the new week. The Federal reserve is continuing to
:01:12. > :01:17.stimulate the country's economy and there is a flood of positive darter
:01:17. > :01:23.from the US and Europe . Leading market indices have been on the
:01:23. > :01:33.rise. Its three of the world's key stock indices, it has been
:01:33. > :01:36.
:01:36. > :01:41.staggering. The S&P 500 has gained 20%. London's FTSE 100 is up 13%. To
:01:41. > :01:50.put that into perspective, if you had invested $100 back in January,
:01:50. > :01:53.it would now be worth $140. But it is not all plain sailing. It has
:01:53. > :02:03.been a very different story in emerging economies. Shanghai
:02:03. > :02:11.Composite index is down 11%. Your $100 investment in Brazil could be
:02:11. > :02:19.worth only $80 now. To discuss what is driving this divergence in
:02:19. > :02:24.investor sentiment, I am joined by a market analyst. Let's begin by
:02:24. > :02:29.talking about the States. We saw the S&P 500 hit a special mark. What
:02:29. > :02:39.were the special key factors? have got a very stimulative Federal
:02:39. > :02:46.reserve, with quantitative easing every month. That has really
:02:46. > :02:51.stimulated the US stock market. That concern had been that it was going
:02:51. > :02:59.to start to taper, but we have the payroll numbers on Friday, which
:02:59. > :03:04.were slightly disappointing, only 162,000 jobs have been added, which
:03:04. > :03:08.now means the market may not get tapering at the beginning of the end
:03:08. > :03:16.of GE, we may have to wait until the end of the year. Good economic news
:03:16. > :03:22.is great news for the stock market, bad economic news means the Federal
:03:22. > :03:28.reserve will continue for longer. Within the job David told, we also
:03:28. > :03:32.had some unemployment numbers. -- job done some. It can down to the
:03:32. > :03:37.lowest level that we have seen in months. Would effect would you say
:03:37. > :03:42.that hide in the positive rise that we saw on the FTSE 100, the decay in
:03:42. > :03:50.Japan as well, it is that down to internal figures? -- the Japanese
:03:50. > :03:55.stock market. In the UK, we did not have a triple-dip recession, we did
:03:55. > :03:59.not have a double dip, if you look at the d'etat, it has been getting a
:03:59. > :04:05.head of steam. The economy seems to be getting past escape assault --
:04:05. > :04:10.velocity. We have got the new governor of the Bank of England, he
:04:10. > :04:14.has a very big speech this week, it is his first information report, and
:04:14. > :04:18.he is expected to talk broadly about what he wants to do with monetary
:04:18. > :04:27.policy. A lot of people are expecting him to keep the rate is
:04:27. > :04:33.lower for much longer, and in Japan, it is Shinzo Abe's economics.
:04:33. > :04:38.see the emerging economies not faring so well. What is going on?
:04:38. > :04:42.One of the big concerns is the slowdown in China. We get a lot of
:04:42. > :04:46.economic data from China this week. We will have a stronger sense as to
:04:46. > :04:52.what is happening. That if you can invest your companies in highly
:04:52. > :04:55.liquid, strong economies, with very good shareholder protection, such as
:04:55. > :05:00.the states or the UK, why would you take the additional risk of
:05:00. > :05:07.countries where you do not know where -- what is going on? If you
:05:07. > :05:12.can make great use in the US, highly liquid, brilliant comedies, you do
:05:12. > :05:16.not need to go to the developing countries. It is if you are feeling
:05:16. > :05:26.more positive, you can go and make a lot of money in the States and Japan
:05:26. > :05:28.
:05:28. > :05:32.and the UK. Let's get more on the impact of the
:05:32. > :05:38.Chinese ban on milk products from New Zealand. China is yet to release
:05:38. > :05:42.an official announcement on the seat -- about the impact is Roddy being
:05:42. > :05:52.sold with the New Zealand dollar falling across the board. -- is
:05:52. > :05:57.already being felt. What more do you have on this? You have the Chief
:05:57. > :06:04.Executive of Fonterra, which is one of the largest's dairy suppliers
:06:04. > :06:11.having a press conference as we speak in Beijing. He is urging
:06:11. > :06:14.customers to basically check their supply chains. They found the strain
:06:14. > :06:20.of bacteria causing botulism in some of its products, including baby
:06:20. > :06:25.formula and sports drinks, which has led to a global recall of up to 1000
:06:25. > :06:33.tonnes of baby products across seven countries, including China. The
:06:33. > :06:37.Fonterra chief executive say that they are acting quickly. So that it
:06:37. > :06:45.can be taken of supermarket shelves, and where it has a ready been
:06:45. > :06:50.purchased, it can be returned. Basically, the impact is
:06:50. > :06:56.significant. 90% of China's milk powder imports originated from New
:06:56. > :07:04.Zealand. If the ban is over a period of time, it could have a certificate
:07:04. > :07:11.impact on the country's economy. It could have only a minimal effect on
:07:11. > :07:14.the sector and the economy if it is addressed immediately. It will have
:07:14. > :07:19.some short-term damage. The share prices of some of the dairy
:07:19. > :07:24.companies has fallen today. Full pretty obvious reasons. But at the
:07:24. > :07:34.end of the day, you hope the New Zealand values of transparency and
:07:34. > :07:37.openness will pay date -- play out in their favour. As the chief
:07:37. > :07:47.executive talks to consumers and the governments, to make sure that
:07:47. > :07:55.
:07:55. > :08:00.confidence returns, just as quickly as possible.
:08:00. > :08:03.In Greece, it seems that even finding aspirin can be a pain.
:08:03. > :08:09.According to officials, the country is running short of almost halved
:08:09. > :08:13.500 of its most used drugs. It seems it is because of the way the State
:08:13. > :08:20.prices its medicines. Millions of euros worth of drugs set at low
:08:20. > :08:24.prices by the State have been sold to other countries. The regulators
:08:24. > :08:28.have been trying to tackle the problem with fines and export bans,
:08:28. > :08:38.but the industry in Europe says it is Greece's outmoded pricing system
:08:38. > :08:42.that is the problem. Essential drugs are not available
:08:42. > :08:48.hard to find. Greek patients waiting in line for donated medicines to
:08:48. > :08:56.keep them going. So who is to blame? As the armed -- crisis unfolded,
:08:56. > :09:02.multinational companies said -- were accused of cutting supplies. But the
:09:02. > :09:12.chaos also has its roots in the basic state reforms. Athens is yet
:09:12. > :09:15.to adopt an EU study all pricing system. In Europe, Greece maintains
:09:15. > :09:23.a constantly changing Master pricelist, to ensure that it pays
:09:23. > :09:29.the lowest possible prices. The sleeves Greek wholesalers with stock
:09:29. > :09:34.they can easily resell profitably and legally in the single market. So
:09:34. > :09:39.the wholesalers are profiting from price differences. It is better
:09:39. > :09:46.business for them, because hospitals and pharmacies are often nonpayers,
:09:46. > :09:49.because they have been reimbursed. The nasty side effects, gaps on the
:09:49. > :09:54.shelves. The multinational drug companies have countered with supply
:09:54. > :10:01.quotas to try to limit exports, but the insulin shortage has left Greeks
:10:01. > :10:04.struggling to obtain about 300 critical jobs. -- drugs. They have
:10:04. > :10:14.responded with export bans and fines. Industry chiefs are pressing
:10:14. > :10:24.for all and more realistic pricing system. The Greek price is put it
:10:24. > :10:28.
:10:28. > :10:36.percent below any price. -- 20%. People drive lorries up to Northern
:10:36. > :10:40.Europe and they make a lot of money. It is all very irrational. Produce
:10:40. > :10:44.is in Greece point out that drug exports are not confined to their
:10:44. > :10:50.country. The health Ministry plans changes, at a time, says the
:10:50. > :10:55.pharmacists. TRANSLATION: Those who export are not the pharmacies. They
:10:55. > :10:58.are the companies. They cannot make money here so they sell their
:10:58. > :11:05.medicines abroad. Perfectly legally. We are the recipients of policies