11/10/2013 World Business Report

Those are the latest headlines from US stocks surged on hope of a deal

to break the budget deadlock, but is itself? My Mac plus, why change

could be on the cards for the way millions of refugees were to ——

A very warm welcome to you. This is World Business Report. In just a

minute we will get the view from the IMF about the US budget crisis that

meeting in Washington. But first, as you have been hearing, talks have

been continuing into the night in Administration and Republicans try

to break the budget deadlock. The fear that the US will be left unable

to pay its bills next week have fear that the US will be left unable

battling global markets. News that offering a debris deal to raise

battling global markets. News that ceiling said US stocks surging.

battling global markets. News that US into a —— industrial average

The financial markets are said to be driven only by greed, but then on

Thursday some of the fear went driven only by greed, but then on

Thursday some of the fear went away. We have seen a really friendly

on the stock market this Thursday away. We have seen a really friendly

on the stock market this Thursday after the Republicans offered a

impact on the market not just here after the Republicans offered a

impact on the market not just here in the US but also around the world.

extension will push it out to the end of November which is six weeks

accept the Republicans' offer. Talks end of November which is six weeks

accept the Republicans' offer. Talks will continue. America's future

ability to pay its bills are —— will continue. America's future

far from certain. What is certain is much of the Federal government

hundreds of thousands of workers. The shutdown enters its 11th day and

the economic impact is getting bigger. For now, America continues

to inch towards a possible default. That optimism for now at least

carried through into Asian markets. How are the mark is doing? As we

speak Asian stocks are at multi— week highs. Even though questions

remain whether or not the deal could be struck, traders are saying Asian

investors are taking chances. They think the agreement could be just

around the corner. A key catalyst as which posted their biggest rally in

The Australian shares are having their biggest gain in three months.

Analysts leave that while no deal emerged from this meeting in the

White House, the two sides will continue to talk. There were some

unsettling moments. President Barack Obama had rejected the plan, but

have not made a decision. They say Now, the US budget battle also comes

Bank. Our reporter is there. He Now, the US budget battle also comes

Bank. Our reporter is there. He director and started by asking him

Is important for the US to resolve this in Paris and move on to the

hard work of dealing with its budget problems and strengthening growth in

the US. I think they will hear that from all of our visitors. We have,

as you mentioned, ministers and central bank governors from 188

member countries. All told, we have 13,000 visitors here, including

people from the private sector. 13,000 visitors here, including

think everyone will be asking this question. What will come through is

this message that what the US does is consequential for the US economy

and because of that is consequential the entire global economy. You say

that these visiting bankers and American delegation about the budget

crisis. Surely they will be begging them to get it sorted out? I suspect

they will say that. I don't know what their conversations will entail

but I suspect they will ask what is going to happen and ex— Lehman ——

order to tell themselves how to and they really need to know in

situation where the big recent global economic uncertainties have

come from the US we have the crisis global economic uncertainties have

come from the US we have the crisis about the budget right now, but

come from the US we have the crisis last few months it has also been

coming from the US is concerned last few months it has also been

coming from the US is concerned about when the Federal reserve is go

true, but let's keep perspective to start withdrawing its stimulus

true, but let's keep perspective that the Fed's potential exit from

unconventional monetary policy is recovering. Our assessment is that

signs of strengthening and it is the recovering. Our assessment is that

signs of strengthening and it is the US government deficit reduction

signs of strengthening and it is the Apart from all of what is going

around this budget short—term issue is that the administration's budget

plans are for somewhat less with —— withdrawal of stimulus. All things

equal, the US economy would be strengthening. That is why the Fed

has been talking about being able to monetary policy. It is interesting

for America and good news for most Moving on there are 45 million

people around the world displaced from their homes by conflict. 2

million from Syria alone. Many end up in refugee camp run by the UN and

other such bodies. The cost and complexity of feeding so many can be

huge. On Friday the world food programme will hand out thousands of

electronic cards which can be used to pay for food bought from local

stores, reducing the need to airlift Feeding the rising tide of flinging

relative safety of neighbouring Syrians is a superhuman task. The

relative safety of neighbouring Lebanon. UN food aid used to be

transport and the handouts for refugees little dignity or choice.

refugees will be issued electric carts. They will be able to use

refugees will be issued electric to choose food to the value of

refugees will be issued electric Fresh, frozen and ferry products are

the power into the hands of the Fresh, frozen and ferry products are

the power into the hands of the hungry people to decide what they

want to eat. To spend money at local shops, injecting money into the

economy. And for them to get a Refrigerated items like milk orgies,

fresh vegetables, that we cannot deliver at that kind of scale. ——

milk orgies. The cards are welcomed by local merchants and give a big

boost to their businesses. Earlier pilot schemes demonstrated the

benefits of the plastic cards, which proved their worth over previous

vouchers. The list of available goods May be limited, but refugee

families already using the cards like the idea of being able to vary

their shopping according to their needs and tastes. The hope is that

the specially designed payment system will help combat fraud. They

are trying to battle the increasing number of Syrians flinging their

country in search of century. —— Just time for one other bit of

Alitalia will meet to discuss a Italian government. Under the plan,

Italy's state—owned Post Office providing it makes radical changes

in existing shareholders, including bankruptcy. From me and the business