:00:02. > :00:12.Edward Snowden. Those are the latest headlines from
:00:12. > :00:21.
:00:21. > :00:28.BBC World News. For the latest financial news with Alice.
:00:28. > :00:33.Result electrify Wall Street. The Greek V8 is now worth more than Fiat
:00:33. > :00:42.and Peugeot combined. Pay with your face - we will be
:00:42. > :00:47.hearing about the latest step towards a world without cash.
:00:47. > :00:53.A warm welcome to you. This is World Business Report. In just a moment, a
:00:53. > :00:58.deepening crisis, or an economy on the mend? We will be looking forward
:00:58. > :01:04.to the latest unemployment figures for Greece. Now we start with this.
:01:04. > :01:09.It is a Tesla model S luxury electric car and it has been getting
:01:09. > :01:13.Wall Street very excited. Shares in Tesla motors soared as much as 15%
:01:13. > :01:22.in after-hours trading. That's after the company reported better than
:01:22. > :01:27.expected results. In fact, Tesla's shares have almost quadrupled,
:01:27. > :01:31.taking the company's value up to over $18 billion. That is more than
:01:31. > :01:37.Italy and France's biggest carmakers, Fiat and Peugeot,
:01:37. > :01:40.combined. This is all very good news for this chap, Tesla's boss and
:01:40. > :01:44.biggest shareholder. He doesn't need the money, of course. He is the
:01:44. > :01:51.co-founder of PayPal and he is already a billionaire three times
:01:51. > :01:56.over. The car may be silent, but this
:01:56. > :02:03.model S is driving Tesla's current success. It delivers more than 5000
:02:03. > :02:07.of these cars and has surpassed its target of 4500. It is creating
:02:07. > :02:12.sparks in the electric car market. This set of wheels to not come
:02:12. > :02:21.cheap. Despite being an $80,000 luxury electric automobile, it has
:02:21. > :02:27.outsold both missile and's electric car and GM's hybrid, which uses both
:02:27. > :02:32.gasoline and electricity -- Nissan. In this largest car market in the
:02:32. > :02:36.world, interest in these kind of automobiles are stuck in neutral.
:02:36. > :02:43.Just 0.5% of all cars sold in the USA this year were electric or
:02:44. > :02:48.hybrid. Given that bumpy road, Tesla has been able to pull out ahead of
:02:48. > :02:53.other electric car makers. Welcome news for its CEO, the quirky
:02:53. > :02:58.co-founder of PayPal and space enthusiast, he has his sights on
:02:58. > :03:02.something even more forward-looking. Next week he will launch a new
:03:02. > :03:11.high-speed transportation system that will hurtle people from one
:03:11. > :03:16.place to another using suction tubes.
:03:16. > :03:19.Lucky him. Now China has just released its trade figures for July.
:03:19. > :03:24.They have given some reassurance that the economy is stabilising
:03:24. > :03:31.after its recent slowdown. Let's go straight to Singapore. Some
:03:31. > :03:35.reassuring numbers here. Reassuring indeed. These numbers
:03:35. > :03:38.came in a lot better than expected. It is a possible sign that the
:03:39. > :03:43.world's second largest economy is potentially stabilising, as you
:03:43. > :03:48.said, following the slowdown. Shipments are rising 5.1% from last
:03:48. > :03:53.year. This is compared to expectations of anywhere between two
:03:53. > :03:58.-3% depending on the various surveys. Imports are also rising by
:03:58. > :04:06.about 11%. Wild swings from June's darter whether numbers had fallen.
:04:06. > :04:10.Exports were down... All of this meant that for July there was a
:04:10. > :04:13.trade surplus of almost $18 billion. These improved numbers
:04:13. > :04:20.follow official manufacturing and service industry indices as well,
:04:20. > :04:26.which also rose in July. This might boost the Premier's chances of
:04:26. > :04:29.hitting the year 7.5% target for expansion. We saw Chinese
:04:29. > :04:35.authorities pledging to stabilise growth while resting on with
:04:35. > :04:39.economic reform. We have all been watching for this darter in concern
:04:39. > :04:42.that it might show a slowdown but it defied expectations. We are also
:04:42. > :04:46.seeing it coming at a time when the Chinese yuan is hitting a record
:04:46. > :04:51.high against the US dollar. The currency is at its highest level
:04:51. > :04:57.since China created it. , since they created the foreign currency market
:04:58. > :05:04.in 1994. There is speculation they may allow it to strengthen even
:05:04. > :05:08.further. Now to Greece where the latest
:05:08. > :05:14.unemployment figures for the month of April are due out in a few hours
:05:14. > :05:18.time. The country's jobless rate has scaled new highs this year. In March
:05:18. > :05:22.it hit 26.9%. That is more than twice the average rate in the
:05:22. > :05:26.eurozone with parts of Europe now apparently on the upturn, though,
:05:26. > :05:32.are there any signs that the years of austerity are paying for Greece?
:05:32. > :05:36.Is the economy still on course to sink even further? We will talk to
:05:36. > :05:41.the Professor of economics at the University of Athens. Many thanks
:05:41. > :05:50.for joining us on the programme. How is it looking in Greece? Is the
:05:50. > :05:52.economy stabilising? I very much fear that it is not. There is
:05:52. > :05:56.nothing in the fundamentals for Greece or for Spain, Italy,
:05:56. > :06:03.Portugal, even in the Eurozone, pointing to change improvement
:06:03. > :06:05.economically. It would need a genuine reduction in unemployment.
:06:05. > :06:15.Is this testament to the fact that the austerity programme is not
:06:15. > :06:16.
:06:16. > :06:23.working? It is not working. We have a triple crisis, the credit crunch,
:06:23. > :06:29.that is due to crisis which is getting deeper, we have a debt
:06:29. > :06:34.crisis which is getting deeper because GDP is falling. Debt is not.
:06:34. > :06:39.We have a dearth of investment. is the answer going forward? What
:06:39. > :06:43.can be done, particularly on the unemployment front? Particularly at
:06:43. > :06:52.youth unemployment, those between the ages of 15 and 24 remained the
:06:52. > :06:57.hardest hit, don't they? Unless we have some rational approach to this
:06:57. > :07:02.triple crisis, unless we can resolve the problem that we have with the
:07:02. > :07:09.banks that are getting more and more in solvent by the day, unless we
:07:09. > :07:12.have some way of managing to get of the eurozone and an investment
:07:12. > :07:22.programme that will shift idle savings into productive city, there
:07:22. > :07:23.
:07:23. > :07:28.is nothing you can do to improve the youth unemployment situation. Very
:07:28. > :07:35.briefly, if the unemployment rate is not better today, it is because the
:07:35. > :07:39.activity rate has fallen. All we can look forward to, if you are looking
:07:39. > :07:42.in a cynical fashion, is that the number of people who are actively
:07:42. > :07:45.seeking jobs is falling, either because they are getting
:07:45. > :07:53.discouraged, getting sick, or they are migrating to Australia or
:07:53. > :07:57.Germany. Thank you, Professor Yunus. Many thanks for giving us a
:07:57. > :08:02.not too optimistic outlook from Athens.
:08:02. > :08:07.Some other news. JP Morgan Chase says it is facing a criminal
:08:07. > :08:12.investigation by the US Department of Justice regarding mortgage-backed
:08:12. > :08:16.securities. Several investigators have already concluded that it broke
:08:16. > :08:19.securities laws. It says it could lose $6.8 billion more than it has
:08:19. > :08:23.already put aside to cover legal action.
:08:23. > :08:29.There could be more evidence that the mining boom is running out of
:08:29. > :08:33.steam later. Mining giant Rio Tinto is expected to report a drop in
:08:33. > :08:38.profits of more than 18% for the six months up to June. That is amid
:08:38. > :08:44.weaker commodity prices there are concerns about global economic
:08:44. > :08:48.growth. We have all left our wallet or purse
:08:48. > :08:53.at home, but it no longer stops you shopping. Now, in a first for the
:08:53. > :08:59.UK's consumers, PayPal, which we were mentioning earlier, has
:08:59. > :09:02.launched a way of paying by smart phone by using your picture. We have
:09:02. > :09:08.been giving it a try. You are on the high street enjoying
:09:09. > :09:14.a bit of shopping. You can pay by cash, by card, and, increasingly,
:09:14. > :09:18.with one of these. A smart phone to tap and pay. But here in Richmond on
:09:18. > :09:24.the outskirts of London you can now do something else. You can use your
:09:24. > :09:30.phone and your face. This is one of the stores that accepts the PayPal
:09:30. > :09:36.system. Luckily for me, it sells frozen yoghurt. I need to find it on
:09:36. > :09:39.the app, now I am checking in. Let's order. Hello, can I have salted
:09:39. > :09:48.caramel with a couple of toppings, please? Strawberry and chocolate
:09:48. > :09:53.chip. I see you have checked in on PayPal? I will charge you right now.
:09:53. > :09:56.Thank you very much. Would you like a receipt? Yes, thank you.Enjoy
:09:56. > :09:59.your yoghurt. We are a small business and the one luxury we have
:09:59. > :10:03.been a small business is that we can provide a more personal experience
:10:03. > :10:07.for the customer. Just having a talking point is a good way to
:10:07. > :10:14.interact with the customer further. We see their profile picture on our
:10:14. > :10:16.screen we see their first name. We can just talk to them. PayPal
:10:16. > :10:21.reckons increasing numbers of us would like to leave our wallet at
:10:21. > :10:27.home when we shop. Is this new technology safe? The man behind the
:10:27. > :10:33.plan things it is. It's backed up with the same security that PayPal
:10:33. > :10:36.has today. If we believe there is suspicious activity happening on
:10:36. > :10:43.someone's mobile phone weevil take steps to ensure that maybe we can
:10:43. > :10:48.prevent that from happening. Could this be the start of a PayPal
:10:48. > :10:55.revolution? It's only available in a dozen locations in Richmond for
:10:55. > :11:00.now. PayPal's challenges are to get its button on thousands of other
:11:00. > :11:04.outlets. No excuse now for not paying a bill.
:11:04. > :11:08.That recovery with talking about in China's trade - the numbers have