Browse content similar to 05/08/2013. Check below for episodes and series from the same categories and more!
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will eventually reduce the cost of meat production. | :00:02. | :00:12. | |
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Another record high. Some global indices hit dizzy new heights, but | :00:26. | :00:32. | |
the stock markets of Brazil and Russia failed to join the party. | :00:32. | :00:37. | |
The sick man in Europe. Crucial medicines run short in Greece. | :00:37. | :00:39. | |
Pharmaceutical companies blamed the government's outdated pricing | :00:39. | :00:49. | |
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system. A very warm welcome to World | :00:51. | :00:55. | |
Business Report. In just a minute, we will go to Athens to hear about | :00:55. | :01:00. | |
the mounting health crisis in Greece, the first let's talk some | :01:00. | :01:04. | |
markets. Record highs, at that is where we are expect the markets in | :01:04. | :01:09. | |
America to start the new week. The Federal reserve is continuing to | :01:09. | :01:12. | |
stimulate the country's economy and there is a flood of positive darter | :01:12. | :01:17. | |
from the US and Europe . Leading market indices have been on the | :01:17. | :01:23. | |
rise. Its three of the world's key stock indices, it has been | :01:23. | :01:33. | |
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staggering. The S&P 500 has gained 20%. London's FTSE 100 is up 13%. To | :01:36. | :01:41. | |
put that into perspective, if you had invested $100 back in January, | :01:41. | :01:50. | |
it would now be worth $140. But it is not all plain sailing. It has | :01:50. | :01:53. | |
been a very different story in emerging economies. Shanghai | :01:53. | :02:03. | |
Composite index is down 11%. Your $100 investment in Brazil could be | :02:03. | :02:11. | |
worth only $80 now. To discuss what is driving this divergence in | :02:11. | :02:19. | |
investor sentiment, I am joined by a market analyst. Let's begin by | :02:19. | :02:24. | |
talking about the States. We saw the S&P 500 hit a special mark. What | :02:24. | :02:29. | |
were the special key factors? have got a very stimulative Federal | :02:29. | :02:39. | |
reserve, with quantitative easing every month. That has really | :02:39. | :02:46. | |
stimulated the US stock market. That concern had been that it was going | :02:46. | :02:51. | |
to start to taper, but we have the payroll numbers on Friday, which | :02:51. | :02:59. | |
were slightly disappointing, only 162,000 jobs have been added, which | :02:59. | :03:04. | |
now means the market may not get tapering at the beginning of the end | :03:04. | :03:08. | |
of GE, we may have to wait until the end of the year. Good economic news | :03:08. | :03:16. | |
is great news for the stock market, bad economic news means the Federal | :03:16. | :03:22. | |
reserve will continue for longer. Within the job David told, we also | :03:22. | :03:28. | |
had some unemployment numbers. -- job done some. It can down to the | :03:28. | :03:32. | |
lowest level that we have seen in months. Would effect would you say | :03:32. | :03:37. | |
that hide in the positive rise that we saw on the FTSE 100, the decay in | :03:37. | :03:42. | |
Japan as well, it is that down to internal figures? -- the Japanese | :03:42. | :03:50. | |
stock market. In the UK, we did not have a triple-dip recession, we did | :03:50. | :03:55. | |
not have a double dip, if you look at the d'etat, it has been getting a | :03:55. | :03:59. | |
head of steam. The economy seems to be getting past escape assault -- | :03:59. | :04:05. | |
velocity. We have got the new governor of the Bank of England, he | :04:05. | :04:10. | |
has a very big speech this week, it is his first information report, and | :04:10. | :04:14. | |
he is expected to talk broadly about what he wants to do with monetary | :04:14. | :04:18. | |
policy. A lot of people are expecting him to keep the rate is | :04:18. | :04:27. | |
lower for much longer, and in Japan, it is Shinzo Abe's economics. | :04:27. | :04:33. | |
see the emerging economies not faring so well. What is going on? | :04:33. | :04:38. | |
One of the big concerns is the slowdown in China. We get a lot of | :04:38. | :04:42. | |
economic data from China this week. We will have a stronger sense as to | :04:42. | :04:46. | |
what is happening. That if you can invest your companies in highly | :04:46. | :04:52. | |
liquid, strong economies, with very good shareholder protection, such as | :04:52. | :04:55. | |
the states or the UK, why would you take the additional risk of | :04:55. | :05:00. | |
countries where you do not know where -- what is going on? If you | :05:00. | :05:07. | |
can make great use in the US, highly liquid, brilliant comedies, you do | :05:07. | :05:12. | |
not need to go to the developing countries. It is if you are feeling | :05:12. | :05:16. | |
more positive, you can go and make a lot of money in the States and Japan | :05:16. | :05:26. | |
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and the UK. Let's get more on the impact of the | :05:28. | :05:32. | |
Chinese ban on milk products from New Zealand. China is yet to release | :05:32. | :05:38. | |
an official announcement on the seat -- about the impact is Roddy being | :05:38. | :05:42. | |
sold with the New Zealand dollar falling across the board. -- is | :05:42. | :05:52. | |
already being felt. What more do you have on this? You have the Chief | :05:52. | :05:57. | |
Executive of Fonterra, which is one of the largest's dairy suppliers | :05:57. | :06:04. | |
having a press conference as we speak in Beijing. He is urging | :06:04. | :06:11. | |
customers to basically check their supply chains. They found the strain | :06:11. | :06:14. | |
of bacteria causing botulism in some of its products, including baby | :06:14. | :06:20. | |
formula and sports drinks, which has led to a global recall of up to 1000 | :06:20. | :06:25. | |
tonnes of baby products across seven countries, including China. The | :06:25. | :06:33. | |
Fonterra chief executive say that they are acting quickly. So that it | :06:33. | :06:37. | |
can be taken of supermarket shelves, and where it has a ready been | :06:37. | :06:45. | |
purchased, it can be returned. Basically, the impact is | :06:45. | :06:50. | |
significant. 90% of China's milk powder imports originated from New | :06:50. | :06:56. | |
Zealand. If the ban is over a period of time, it could have a certificate | :06:56. | :07:04. | |
impact on the country's economy. It could have only a minimal effect on | :07:04. | :07:11. | |
the sector and the economy if it is addressed immediately. It will have | :07:11. | :07:14. | |
some short-term damage. The share prices of some of the dairy | :07:14. | :07:19. | |
companies has fallen today. Full pretty obvious reasons. But at the | :07:19. | :07:24. | |
end of the day, you hope the New Zealand values of transparency and | :07:24. | :07:34. | |
openness will pay date -- play out in their favour. As the chief | :07:34. | :07:37. | |
executive talks to consumers and the governments, to make sure that | :07:37. | :07:47. | |
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confidence returns, just as quickly as possible. | :07:55. | :08:00. | |
In Greece, it seems that even finding aspirin can be a pain. | :08:00. | :08:03. | |
According to officials, the country is running short of almost halved | :08:03. | :08:09. | |
500 of its most used drugs. It seems it is because of the way the State | :08:09. | :08:13. | |
prices its medicines. Millions of euros worth of drugs set at low | :08:13. | :08:20. | |
prices by the State have been sold to other countries. The regulators | :08:20. | :08:24. | |
have been trying to tackle the problem with fines and export bans, | :08:24. | :08:28. | |
but the industry in Europe says it is Greece's outmoded pricing system | :08:28. | :08:38. | |
that is the problem. Essential drugs are not available | :08:38. | :08:42. | |
hard to find. Greek patients waiting in line for donated medicines to | :08:42. | :08:48. | |
keep them going. So who is to blame? As the armed -- crisis unfolded, | :08:48. | :08:56. | |
multinational companies said -- were accused of cutting supplies. But the | :08:56. | :09:02. | |
chaos also has its roots in the basic state reforms. Athens is yet | :09:02. | :09:12. | |
to adopt an EU study all pricing system. In Europe, Greece maintains | :09:12. | :09:15. | |
a constantly changing Master pricelist, to ensure that it pays | :09:15. | :09:23. | |
the lowest possible prices. The sleeves Greek wholesalers with stock | :09:23. | :09:29. | |
they can easily resell profitably and legally in the single market. So | :09:29. | :09:34. | |
the wholesalers are profiting from price differences. It is better | :09:34. | :09:39. | |
business for them, because hospitals and pharmacies are often nonpayers, | :09:39. | :09:46. | |
because they have been reimbursed. The nasty side effects, gaps on the | :09:46. | :09:49. | |
shelves. The multinational drug companies have countered with supply | :09:49. | :09:54. | |
quotas to try to limit exports, but the insulin shortage has left Greeks | :09:54. | :10:01. | |
struggling to obtain about 300 critical jobs. -- drugs. They have | :10:01. | :10:04. | |
responded with export bans and fines. Industry chiefs are pressing | :10:04. | :10:14. | |
for all and more realistic pricing system. The Greek price is put it | :10:14. | :10:24. | |
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percent below any price. -- 20%. People drive lorries up to Northern | :10:28. | :10:36. | |
Europe and they make a lot of money. It is all very irrational. Produce | :10:36. | :10:40. | |
is in Greece point out that drug exports are not confined to their | :10:40. | :10:44. | |
country. The health Ministry plans changes, at a time, says the | :10:44. | :10:50. | |
pharmacists. TRANSLATION: Those who export are not the pharmacies. They | :10:50. | :10:55. | |
are the companies. They cannot make money here so they sell their | :10:55. | :10:58. | |
medicines abroad. Perfectly legally. We are the recipients of policies | :10:58. | :11:05. |