:00:05. > :00:14.at the centre of a health scare this week.
:00:15. > :00:27.
:00:27. > :00:33.All of the signs point to a strengthening UK economy, so is that
:00:33. > :00:43.tide finally turning. We take a look. Wilfully misled, that is what
:00:43. > :00:54.
:00:54. > :00:58.the US government claims that Bank Welcome. We will hear about the
:00:58. > :01:03.latest fraud case that has been launched against the Bank of
:01:03. > :01:07.America. The tide is turning on the British
:01:07. > :01:12.economy, finally the momentum behind a sustained economic recovery is
:01:12. > :01:17.mounting. The latest stream of up the figures paint a very positive
:01:17. > :01:21.picture. Manufacturing output rose 19% month on month, that was double
:01:21. > :01:26.the speed analysts had been expecting. Retail sales enjoyed
:01:26. > :01:32.their fastest low growth in seven years, rising by 2.2 percent as
:01:32. > :01:39.people rush to the shops to why things like barbecues and sunscreen.
:01:39. > :01:47.Car sales also involved -- indicated a bumper after more sales are
:01:47. > :01:52.registered on this time a year ago. The survey of the UK service
:01:52. > :01:57.reported a growth rate of 60.2, the fastest rate of expansion in nearly
:01:57. > :01:59.six years. With all of these positive numbers, how are Britain's
:01:59. > :02:04.policymakers to react? Surprisingly, the expectation is
:02:04. > :02:09.very subdued response. Today's Bank of England inflation news conference
:02:09. > :02:15.is due at 10:30am, sets to give forward guidance and state that
:02:16. > :02:22.interest rates will raid -- remain at record lows will sometime yet.
:02:22. > :02:29.Let us take a look at the Bank of England 's strategy going forward.
:02:30. > :02:33.Joining is the chief economist of Deutsche Bahn.
:02:33. > :02:37.He is probably going to tell us that interest rates are going to stay
:02:37. > :02:42.very low for quite sometime. We're not quite sure how he is going to do
:02:42. > :02:48.this. What he will probably say is to ignore the fact that growth rates
:02:48. > :02:52.are improving and focus on the fact that the level of output in the UK
:02:52. > :02:56.economy is massively below its previous prerecession peak and
:02:56. > :03:00.therefore we need to stimulate the economy and get these growth rates
:03:00. > :03:05.to continue. If the markets start to price in higher interest rates, that
:03:05. > :03:11.could derail the very fragile recovery and that is what is to
:03:11. > :03:17.encourage. His seat is a fragile recovery. We were just giving out
:03:17. > :03:20.some of the positive data we have had recently, but it is important to
:03:20. > :03:25.remember that although it is good news, we are still way below where
:03:25. > :03:30.we were in 2005. The important point is that Mr Carney has come from a
:03:30. > :03:38.country which has had economic output rise substantially from 2007.
:03:38. > :03:45.It has gone up by around 5%. We are operating at about 3% below where we
:03:45. > :03:50.were back in 2007. Things still look fragile because the level of output
:03:50. > :03:55.is so low. This forward guidance. This is a tried and tested formula,
:03:55. > :03:59.isn't it? He did it back in Canada. It is also a policy that has been
:03:59. > :04:01.adopted at the United States. is right. There are two slightly
:04:01. > :04:05.different policies. In Canada they said they would keep interest rates
:04:05. > :04:10.on hold for a year and a half. In the US they are saying they will
:04:10. > :04:17.keep interest rates on hold until unemployment. Down to 6.5%. Slightly
:04:17. > :04:23.different policies, but aiming to do the same thing, which is aiming to
:04:23. > :04:26.do that keep interest rates low. They are trying to tell the markets
:04:26. > :04:30.that they are going to keep their official rates, the rates that they
:04:30. > :04:38.sit on a monthly basis, at very low levels. That should also keep longer
:04:38. > :04:41.term interest rates low as well. Thank you.
:04:41. > :04:46.There are more ramifications now from the US mortgage scandal. The US
:04:46. > :04:48.government has sued bank of America for allegedly lying to investors
:04:48. > :04:54.about the quality of its mortgage-backed securities that it
:04:54. > :05:00.sold back into thousand eight. -- 2008.
:05:00. > :05:04.The US government has described Bank of America as reckless and
:05:04. > :05:09.fraudulent. In its latest effort to halt Wall Street accountable for
:05:09. > :05:14.misconduct that led to the financial crisis, both the Justice Department
:05:14. > :05:18.and financial regulators have filed lawsuits against the bank. They are
:05:18. > :05:22.related to mortgage-backed securities worth $850 million. They
:05:22. > :05:26.were created by packaging together groups of residential mortgage
:05:26. > :05:30.loans. Bank of America allegedly knew that more than 40% of the
:05:30. > :05:35.mortgages did not comply with its own standards, and yet sold them to
:05:35. > :05:40.investors anyway. The bank denies the charges, saying that they were
:05:40. > :05:43.sold to sophisticated investors who have sufficient information. In
:05:43. > :05:51.recent years, the Bank of America has been forced to pay billions of
:05:51. > :05:55.dollars in order to settle lawsuits arising from the financial crisis.
:05:55. > :06:01.China has fined six baby formula companies for price-fixing. The
:06:01. > :06:04.mostly foreign companies have been fined a total of $108 million and
:06:04. > :06:14.include New Zealand's giant Fonterra. Which was at the centre of
:06:14. > :06:21.
:06:21. > :06:30.a health scare this we. What is the latest on all this? The six
:06:30. > :06:36.companies include Fonterra. The two US -based companies were hit by
:06:37. > :06:46.particularly large fines. One is going to pay $38 million. The other
:06:47. > :06:47.
:06:47. > :06:50.$26 million. Fonterra will pay $700,000. The move follows
:06:50. > :06:54.anti-trust and anticompetition probes by authorities in China.
:06:54. > :06:59.Consumers in China are willing to pay lots more. And brands, after
:06:59. > :07:03.public trust was hit when six children died from drinking tainted
:07:03. > :07:11.milk into thousand and eight. The fines were announced by China's top
:07:11. > :07:13.economic planner and it coincides with a separate pricing
:07:13. > :07:17.investigation into the pharmaceutical industry as well.
:07:17. > :07:23.None of the companies have given details of the conduct that has
:07:23. > :07:26.caused these fines to be imposed. Fonterra has been facing its own set
:07:26. > :07:32.of problems after it announced a worldwide recall of some of its
:07:32. > :07:36.problems in a health scare last weekend. The overseas manufacturers
:07:36. > :07:38.have set a minimum at which their products could be sold in China.
:07:38. > :07:48.That has been leading to these higher prices, according to the
:07:48. > :07:49.
:07:49. > :07:51.media. Thank you. Let's stay with China, where a
:07:51. > :07:56.record 7 million students graduated from university this year. But for
:07:56. > :08:00.many, their high hopes are being crushed by the country 's economic
:08:00. > :08:05.slowdown. Companies are hiring 15% fewer graduates than they did one
:08:05. > :08:11.year ago. As our correspondent reports, the job hunters never been
:08:11. > :08:17.harder. A temple may not be the obvious
:08:17. > :08:20.place to start a job hunt, but in China, graduates need all the help
:08:20. > :08:27.they can get. Some are hoping for a spot of divine intervention. For
:08:27. > :08:33.this student, graduates and is still three units away -- graduation is
:08:33. > :08:38.still three years or way. But she still worried. The pressure is
:08:38. > :08:48.tougher and tougher. I should improve my study skills and I come
:08:48. > :08:48.
:08:48. > :08:51.here to pray for my job in the future. The prayers of many of the
:08:51. > :08:56.graduates in this job they are going on Ansett. China may be trying to
:08:56. > :09:01.build an educated workforce to rival the west, but for now, most of the
:09:01. > :09:06.jobs here are low skilled and poorly paid. China is now producing three
:09:06. > :09:11.times as many graduates as it did a decade ago. Many hoped that hoping
:09:11. > :09:17.-- many hope that having a career would be a ticket to distract a
:09:17. > :09:22.degree of the ticket to having a better life but now is the toughest
:09:22. > :09:26.I do find a job. This student graduated last month and is applied
:09:26. > :09:30.for more than 100 positions. He hopes to work in finance.
:09:30. > :09:35.TRANSLATION: Finding a job is more difficult than I expected. But I can
:09:35. > :09:41.accept it. My dream is to become a stockbroker. That in the current
:09:41. > :09:47.employment situation, I don't think I will get that position. Business
:09:47. > :09:51.is here say that many graduates are not equipped for the world of work.
:09:51. > :09:55.He got lucky at the fair and is heading off to interview for a sales
:09:55. > :09:59.position. China has created an educated generation, with
:09:59. > :10:09.expectations to match. But the worry for the country 's leaders is that
:10:09. > :10:17.
:10:17. > :10:26.there are not enough decent jobs to Let's have a look to see how markets
:10:26. > :10:31.are getting on in Asia this morning. We are all waiting for that
:10:31. > :10:34.announcement from Mark Carney at 10:30am local time. Asian markets