20/09/2013

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:00:00. > :00:00.BBC World News. Now for the latest financial news

:00:00. > :00:20.Nigeria's criminal crude — oil worth with Alice

:00:20. > :00:22.Nigeria's criminal crude — oil worth billions of dollars is stolen and

:00:22. > :00:28.sold on international markets every year, according to a new report.

:00:28. > :00:34.Iceland's Prime Minister tells the BBC his country is open for business

:00:34. > :00:35.five years after the financial crisis that brought it to the brink

:00:35. > :00:55.of bankruptcy. Welcome to World Business Report.

:00:55. > :00:59.Sunday's German election with a top Sunday's German election with a

:00:59. > :01:02.economist in Berlin. But first, stolen on an industrial

:01:02. > :01:04.scale — that is how a new report describes the theft of crude oil

:01:04. > :01:07.Nigeria. A Nigeria. A massive criminal

:01:07. > :01:12.enterprise that has knock—on effects around the world. According to the

:01:12. > :01:15.Royal Institute of International Affairs, 100,000 barrels of oil per

:01:15. > :01:21.day were stolen from pipelines in the Niger Delta in the first three

:01:21. > :01:22.months of this year. Counting theft from export terminals, that total

:01:22. > :01:31.could be much higher. The theft could be much higher. The theft and

:01:31. > :01:37.lost production because of damage to pipelines costs Nigeria an estimated

:01:37. > :01:40.$5 billion a year in lost revenue. Stolen oil from this area could be

:01:40. > :01:43.finding its way into markets in the US, Asia and the Balkans, often

:01:43. > :01:50.mixed with legitimate crude to make it untraceable. And the proceeds are

:01:50. > :01:51.likely to be laundered in the financial centres like London,

:01:51. > :02:02.Singapore and Dubai. Here is our Singapore and Dubai. Here is our

:02:02. > :02:08.correspondent in Nigeria. Armed and ready for action. These

:02:08. > :02:10.soldiers are off to patrol the creeks of the Niger Delta. Tough

:02:10. > :02:17.security is needed here because creeks of the Niger Delta. Tough

:02:17. > :02:19.is stolen. It is estimated that Nigeria lost about 100,000 barrels

:02:19. > :02:22.of oil every day of this year 's first quarter. It is a lucrative

:02:22. > :02:31.oil which is then sold break into pipelines,

:02:31. > :02:43.internationally. Closer home, some of the stolen oil is processed

:02:44. > :02:48.from their land. This is contributed to the ongoing plunder of resource.

:02:48. > :02:51.The corporation charged with regulating the oil industry is often

:02:51. > :02:55.report has raised these reports —— report has raised these reports ——

:02:55. > :03:04.these concerns and more, calling for foreign governments to and ensuring

:03:04. > :03:07.countries. They have also urged the countries. They have also urged the

:03:07. > :03:14.government to track the oil more thoroughly. Stemming the flow of

:03:14. > :03:17.stolen crude is crucial. This report highlights the well—known facts

:03:17. > :03:24.about the billions of dollars of oil —— of revenue lost to theft. The

:03:24. > :03:27.Nigerian authorities, including the Nigerian authorities, including the

:03:27. > :03:31.military, have themselves been accused of being complacent or even

:03:31. > :03:37.colluding with the thieves. Clearly, the government has its work

:03:37. > :03:38.cut out if it is to put an end to this rampant pilfering of the nation

:03:38. > :03:42.'s most treasured resource. 's most treasured resource.

:03:42. > :03:44.Now to Germany, and Now to Germany, and Sunday's

:03:44. > :03:48.election, which is being closely watched by global markets.

:03:48. > :03:50.Chancellor Angela Merkel's centre right coalition has a slim lead over

:03:50. > :04:01.the left—leaning opposition parties in opinion polls. She's credited

:04:01. > :04:03.with steering a with steering a steady course

:04:03. > :04:05.through the eurozone crisis so far, insisting on tough austerity in

:04:05. > :04:09.return for Germany's financial support. That's despite calls from

:04:09. > :04:12.the left for more emphasis on growth and from the right to quit the euro

:04:12. > :04:17.as usual on Monday? as usual on Monday?

:04:17. > :04:21.President of the DIW research President

:04:21. > :04:27.Come Sunday, is it likely that we institute in Berlin.

:04:27. > :04:34.are going to see any major change in are going to see any major change in

:04:34. > :04:36.Germany's economic policy? Good morning. No ID not think there will

:04:36. > :04:37.be a major feeling that the German economy is

:04:37. > :04:43.government will come feeling that the German economy is

:04:43. > :04:47.everything right in the past is the everything right in the past is the

:04:47. > :04:55.perception. On key issues, the major parties have

:04:55. > :04:56.position will stop I do not expect there will be any major change. What

:04:56. > :05:00.about the differences in calls that we are seeing from some parties

:05:00. > :05:05.saying that the austerity routes that we are seeing across Europe,

:05:05. > :05:08.being driven by Germany, is still working, others saying it is not,

:05:08. > :05:15.those on the right in Germany saying they want to leave the eurozone

:05:15. > :05:18.altogether. There is big support within Germany to stay within the

:05:18. > :05:23.euro and also to keep all the other members part of the euro. The

:05:23. > :05:27.attitude of the population and of the major parties is very much pro—

:05:27. > :05:33.European. However, there is little appetite, as before, by any party to

:05:33. > :05:37.give more to Europe in terms of financing, so the German government

:05:37. > :05:43.will do the least necessary to keep the euro afloat. There is also these

:05:43. > :05:51.Germany. This focus on the need for Germany. This focus on the need for

:05:51. > :05:53.a minimum wage in Germany, and also this debate about the top rate of

:05:53. > :05:59.tax, and whether tax, and whether it should be

:05:59. > :06:03.raised. The election campaign has very much been about fairness, not

:06:03. > :06:08.about the economy, Howard is doing, but really about distribution. You

:06:08. > :06:12.should have how much within German society. Very much a push towards

:06:12. > :06:13.more equality, less inequality in terms of income and benefits and

:06:13. > :06:16.entitlements will stop that has been entitlements will stop that has

:06:16. > :06:20.a key issue. But the European issues a key issue. But the European issues

:06:20. > :06:29.and the German economy has not been at the forefront of the debate.

:06:29. > :06:30.Would you say that debate is focused on Eurozone crisis, unemployment and

:06:30. > :06:32.social policy, but specifically social policy, but specifically on

:06:32. > :06:41.the topic of the top the topic of the top rated tax, is

:06:41. > :06:47.that likely to gain traction? Has it proved a divisive point within the

:06:47. > :06:48.campaigning? This discussion of raising the tax for the top income

:06:48. > :06:55.earners has been very controversial. But I think it is fair to say that

:06:55. > :06:59.there is a fair bit of scepticism echoes the German government already

:06:59. > :07:01.has a fiscal surplus. A lot of people ask, why do we need a another

:07:01. > :07:11.is doing very well? I have picked tax rate if the government

:07:11. > :07:18.is doing very well? I have picked out whether such a big change in

:07:18. > :07:20.income tax for the top earners will come into effect because of that

:07:20. > :07:21.surplus and that the government has surplus and that the government

:07:21. > :07:25.been doing very well. been doing very well.

:07:25. > :07:31.Thank you for joining me. Thank you for joining me.

:07:31. > :07:33.Five years ago, its banking system collapsed, its currency crashed and

:07:33. > :07:35.it was plunged into a severe recession. But now Iceland is back

:07:35. > :07:41.and ready for and ready for international

:07:41. > :07:44.investment. That's the message from its prime minister Sigmundur

:07:44. > :07:45.week trying to entice foreign week trying to entice foreign

:07:45. > :07:51.capital back to his country. capital back to his country. He's

:07:51. > :07:57.been talking to the BBC and started by telling us why Iceland has halted

:07:57. > :08:01.talks to join the European Union. There is very little support for EU

:08:01. > :08:07.membership in Iceland. Why is that? Because things are not progressing

:08:07. > :08:17.economically in the eurozone in particular. We see GDP growth in

:08:17. > :08:24.Iceland, we see stability, economic and political stability returning.

:08:24. > :08:31.future, based on natural resources, future, based on natural resources,

:08:31. > :08:36.the position in the Arctic, a the position in the Arctic, a

:08:36. > :08:45.EU talks now? Will there be a so on. Have you closed the

:08:45. > :08:49.referendum? We have decided we would referendum? We have decided we would

:08:49. > :08:57.not continue without a referendum. point would a referendum be a viable

:08:57. > :08:59.option. The next step would be to have a debate in Parliament. What is

:08:59. > :09:06.the opinion of what it is it —— what the opinion of what it is it —— what

:09:06. > :09:08.is it becoming? We will have two decide whether it is something which

:09:08. > :09:14.will suit us in the future. You have talked about capital controls. They

:09:14. > :09:25.Iceland. In a way, unfairly protect basically prevent foreign owned

:09:25. > :09:33.rid of them? And what effect will they have on the economy? They were

:09:33. > :09:37.a necessity because of the situation the economic crisis created in

:09:38. > :09:42.to deal with. However, the to deal with. However, the

:09:42. > :09:48.fundamentals of fundamentals of the Icelandic

:09:48. > :09:53.inspecting investment to grow inspecting investment to grow

:09:53. > :09:55.steadily, we are expecting the current —— the currency

:09:55. > :10:05.strengthen. Everybody remembers the strengthen. Everybody remembers the

:10:05. > :10:06.banking saga in Iceland. It is that —— is it now I trust worthy

:10:06. > :10:19.situation? The Eurozone and the EU situation? The Eurozone and the EU

:10:19. > :10:23.have not gone through this process. Iceland has built a more stable

:10:23. > :10:28.system, transparent and well system, transparent and well

:10:28. > :10:30.functioning, so people should feel more at ease investing in Iceland

:10:30. > :10:33.are in in other places. —— than