07/11/2013 World Business Report


07/11/2013

Similar Content

Browse content similar to 07/11/2013. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Hall, calling for the resignation of the Toronto mayor, Rob Ford. He says

:00:00.:00:00.

he will not stand down, despite admitting to smoking crack cocaine.

:00:00.:00:23.

The Twitter frenzy. Investors scramble for a piece of the social

:00:24.:00:26.

network in the biggest internet flotation since Facebook. Pressure

:00:27.:00:31.

mounts on the European Central Bank to cut the cost of borrowing, as the

:00:32.:00:40.

eurozone economy struggles. Welcome to the programme.

:00:41.:00:50.

Another workload close on Wall Street `` record close on Wall

:00:51.:00:55.

Street. The biggest technology flotation since Facebook. Is it a

:00:56.:00:59.

major investment opportunity or a bubble waiting to burst? Twitter

:01:00.:01:06.

makes its stock market debut today. On Wednesday, Twitter confirmed it

:01:07.:01:10.

had priced its shares at $26 each, which is higher than expect that,

:01:11.:01:17.

signalling strong investor demand. The overall stock market valuation

:01:18.:01:22.

is $18 billion, not bad for a company that has never made a

:01:23.:01:31.

profit. It is considered America's past time. They are a minor league

:01:32.:01:43.

baseball team based in Coney Island. They have been drawing the crowd for

:01:44.:01:48.

12 years. This is the team's Director of Communications, and

:01:49.:01:51.

Twitter has become a huge part of his job. This is an everyday thing.

:01:52.:02:01.

Every hour, every minute. We have to monitor it all the time,

:02:02.:02:05.

particularly when we have games. When the games are being played

:02:06.:02:11.

here, they get very busy. Billy tweets about the experience of the

:02:12.:02:15.

stadium and, of course, after every single score. He also receives

:02:16.:02:22.

feedback from everyone who has come to watch the game here at Coney

:02:23.:02:26.

Island. Some people pay for their advertisements to appear on his

:02:27.:02:31.

timeline. Advertising accounts for 91% of Twitter's revenue. However,

:02:32.:02:38.

the company is yet to turn a profit. For an advertiser, Twitter is a

:02:39.:02:45.

valuable proposition. The future value of Twitter is that right now,

:02:46.:02:49.

they are only making money from a small percentage of its user base.

:02:50.:02:54.

Going forward, as they begin to monetise the rest of their users,

:02:55.:03:00.

there will be opportunities. And it's not just a fad. It's something

:03:01.:03:07.

that everybody uses. Unlike MySpace, Twitter and Facebook have done great

:03:08.:03:13.

jobs in letting it be what it is. For businesses, it's a great way to

:03:14.:03:19.

see your client base expand. Twitter and social media is not going to go

:03:20.:03:23.

away. It will only get bigger. That is only if fans continue to follow

:03:24.:03:30.

Billy's tweets. The website thrives on its popularity. What's Twitter

:03:31.:03:35.

requires is not a home run but many regular hits.

:03:36.:03:43.

We will be talking more about Twitter when we talk about the

:03:44.:03:50.

day's newspapers. Is a cut in interest rates on the cards for the

:03:51.:03:55.

eurozone? Officials at the European Central Bank meet later today to set

:03:56.:04:00.

the cost of rowing in the eurozone. Interest rates are already at a

:04:01.:04:07.

record low. `` the cost of borrowing in the eurozone. Prices are rising

:04:08.:04:12.

at a very slow rate archly due to falling wages. Annual inflation fell

:04:13.:04:20.

to a rate of 0.7% in October, well below the target of 2% for a healthy

:04:21.:04:26.

economy. Unemployment is still at 12.2%. The economy is forecast to

:04:27.:04:34.

grow at only 1.1% next year, according to the European

:04:35.:04:39.

Commission. Thank you for joining us. First of all, what do you expect

:04:40.:04:51.

them to do today? It is fair to say that the dynamics have changed going

:04:52.:04:57.

into today's meeting. Some of the information coming out of the

:04:58.:05:00.

eurozone has been soft. Inflation has been at new low levels.

:05:01.:05:09.

Unemployment is at new high levels. In addition, the credit picture is

:05:10.:05:16.

decidedly anaemic. All of that gives plenty of fodder for the governing

:05:17.:05:20.

Council to think about. However, we are not expect in the European

:05:21.:05:25.

Central Bank to jump the run with an interest rate cuts today `` jumped

:05:26.:05:32.

the gun. It is not just about the information being weak, it is about

:05:33.:05:35.

whether they are weaker than expected. It is worth recalling that

:05:36.:05:41.

the governing Council has been talking about a week recovery for

:05:42.:05:47.

some time, now. And interest rate cut would give a symbolic boost,

:05:48.:05:52.

perhaps, to financial markets, and possibly a feelgood factor for a

:05:53.:05:57.

short time. But what impact would it have in helping the economy? From

:05:58.:06:02.

the European Central Bank's perspective, they will be more

:06:03.:06:06.

interested in pockets of vulnerability in the eurozone. That

:06:07.:06:11.

suggests that more targeted support should be on the agenda. That might

:06:12.:06:18.

include further liquidity for struggling banks. An interest rate

:06:19.:06:22.

cut is not likely to have an immediate impact on the real

:06:23.:06:27.

economy. The euro has been declining in recent days, but today, it is

:06:28.:06:33.

heading up due to the strong economic news we had out of Germany

:06:34.:06:38.

yesterday. What is your prognosis for the eurozone? I do not imagine

:06:39.:06:46.

Mario Draghi getting away without highlighting the euro in some way.

:06:47.:06:52.

That said, I believe the European Central Bank will be at pains to

:06:53.:06:56.

emphasise that the exchange rate itself is not a target on its own.

:06:57.:07:02.

In fact, other members have in recent weeks downplayed the strength

:07:03.:07:07.

of the euro as a real headwind for the recovery. In general, I believe

:07:08.:07:13.

the European Central Bank will forecast a sluggish return to growth

:07:14.:07:18.

in the eurozone. All indicators suggest that is what is on the

:07:19.:07:27.

cards. Thank you. Financial markets across the globe

:07:28.:07:30.

are very much watching the central bank. How are the market is doing

:07:31.:07:46.

today in Asia? `` markets. Asian investors are also watching very

:07:47.:07:51.

closely. They are looking at how the federal Reserve will react to key

:07:52.:07:56.

economic reports and how that will affect monetary policy going

:07:57.:08:08.

forward. `` Federal Reserve. This might give some indication as to

:08:09.:08:14.

when the central bank might wind down its stimulus initiatives.

:08:15.:08:19.

Looking at the markets right now, shares are at record low levels as

:08:20.:08:24.

investors are reluctant to bid on stocks. There are losses in Hong

:08:25.:08:32.

Kong and China. Dealers are cautious behind a Chinese Communist Party

:08:33.:08:35.

gathering this weekend, which is expect to outline economic policy

:08:36.:08:41.

for the next five years. The Japanese market is also flat, as

:08:42.:08:44.

investors search for new trading opportunities. It is all about

:08:45.:08:54.

waiting and watching. Thank you. More detail, now, on that report

:08:55.:09:00.

from the US. The US economy may have lost some steam in the three months

:09:01.:09:06.

to September. Official figures are expected to show annual growth

:09:07.:09:11.

slowing to 2% in the third quarter, down from the previous three months.

:09:12.:09:15.

This could be justification for the Federal Reserve to keep it to be

:09:16.:09:22.

less programme in place. On Friday `` to keep its stimulus programme in

:09:23.:09:27.

place. Reports on Friday also indicated an increase in the

:09:28.:09:33.

unemployment rate. BP, Morgan Stanley and Shall our three

:09:34.:09:41.

companies `` Shell are among three companies accused of conspiring to

:09:42.:09:49.

fix the Brent oil rates. The benchmark is used to price around

:09:50.:09:54.

60% of world crude and determines the cost of petrol and heating fuel.

:09:55.:10:07.

That is all from BBC business

:10:08.:10:08.

Download Subtitles

SRT

ASS