:00:00. > :00:00.latest headlines. Now for the latest headlines.
:00:00. > :00:22.`` business News. $13 billion, that is the price JP
:00:23. > :00:27.Morgan will pay the US government for its role in the 2008 financial
:00:28. > :00:38.crisis. And persuading the people, Shinzo Abe defends his plan for a
:00:39. > :00:43.succession of tax hikes. Hello and welcome to World Business
:00:44. > :00:48.Report. Also in the programme, getting reaction from our team in
:00:49. > :00:55.Singapore to the other latest economic News and Japan's numbers.
:00:56. > :00:58.But festival, the 2008 financial crisis to not just to not just do it
:00:59. > :01:04.on this damage to the financial systems, it wrecked people 's lives.
:01:05. > :01:07.There is no wonder that harsh punishments are being handed out to
:01:08. > :01:13.those judged to have been at the centre of the debacle. Today a price
:01:14. > :01:21.was set for the part a Piedmont and, one of the world's biggest
:01:22. > :01:27.banks, it is to pay $30 billion. To settle claims that it ever settled
:01:28. > :01:32.the value of products sold to clients. It is also awaiting the
:01:33. > :01:41.outcome of a criminal probe from New York.
:01:42. > :01:44.It is America's biggest bank. One of the founding financial institutions
:01:45. > :01:48.in this country. It did not need a bailout during the banking crisis.
:01:49. > :01:55.But JP Morgan has just been handed the biggest ever fine by the US
:01:56. > :01:59.government. The settlement is a major step in restoring confidence
:02:00. > :02:08.in our financial markets, no matter how big you are. Like many banks, JP
:02:09. > :02:12.Morgan was bundling home loans into securities and marketing them as
:02:13. > :02:17.investments. As homeowners began defaulting on mortgages, the value
:02:18. > :02:24.of those securities plummeted. Investors lost millions. In
:02:25. > :02:28.accepting the penalty, JP Morgan is admitting the bank did not comply
:02:29. > :02:33.with its own guidelines. Employees knew the loans were bad. But despite
:02:34. > :02:39.the record penalty, though one person has been held responsible. At
:02:40. > :02:43.some point the American people need a symbol of accountability. That has
:02:44. > :02:51.not happened. It is not happening with the settlement, for all the
:02:52. > :02:56.bluster that is being given. As an American, I still feel like we need
:02:57. > :03:01.serious accountability for what happened. JP Morgan is still
:03:02. > :03:09.massively profitable. It made $20 billion in 2012. It is
:03:10. > :03:15.likely to do even better this year. It has been a hit against profits
:03:16. > :03:20.and cash reserves. Especially given the size of the fine. On the other
:03:21. > :03:26.hand, the show price is going up again to a ten year high. While
:03:27. > :03:33.nobody likes a fine, especially of this magnitude, shareholders have
:03:34. > :03:39.responded positively. It is eliminating some uncertainty. With
:03:40. > :03:45.this record settlement, JP Morgan hopes to put the fallout behind
:03:46. > :03:50.them. But it still faces considerable legal jeopardy.
:03:51. > :03:56.Investigations into rate fixing, foreign exchange manipulation and
:03:57. > :04:01.its conduct in China. Plans for a controversial rise in
:04:02. > :04:06.Japan's sales tax will be debated by the country's ruling party today.
:04:07. > :04:13.Shinzo Abe eight's decision to try and doubled the country's sales tax
:04:14. > :04:19.to 10% by 2050 with a lift in April next year is a popular. `` 2015. But
:04:20. > :04:26.the party is hoping a spending boost for the wider economy will ease the
:04:27. > :04:30.impact on consumers. So why does the government is to lift the sales tax?
:04:31. > :04:36.The government says that it is essential if Japan is to achieve a
:04:37. > :04:43.balanced budget 2020. It is hoped that it will raise crucial funds for
:04:44. > :04:49.the welfare bill. 40% of Japan's population is going to be retired by
:04:50. > :04:51.2060. But critics say that it will hurt an economy that has only
:04:52. > :04:58.recently gone on the road to recovery. We will speak to a senior
:04:59. > :05:05.economist at Fujitsu research. Thank you for being on the programme. Tell
:05:06. > :05:12.us more about the impact it will have on the Japanese economy,
:05:13. > :05:17.assuming it comes into being? Japan basically needs two things. One is
:05:18. > :05:21.additional growth to finance the growing number of retiring
:05:22. > :05:28.employees. The other is a balanced budget. Japan's government that is
:05:29. > :05:32.beyond 20%. They need to be balanced. What the government is
:05:33. > :05:41.doing is trying to implement a sales tax hike. There will be an
:05:42. > :05:53.additional supplementary budget. Is it the right tool to achieve those
:05:54. > :05:59.goals that are just mentioned? There is basically no choice. The economy
:06:00. > :06:06.has called over the past three months, but it still a necklace
:06:07. > :06:14.track. It is very successful in lifting sentiment. The government is
:06:15. > :06:18.anxious to keep growth growing. There is some lifting to do.
:06:19. > :06:23.Government spending will carry the economy through next year. After
:06:24. > :06:31.that we need to see some structural reforms. Some improvement,
:06:32. > :06:35.innovation and investment. You say there is no choice. What about the
:06:36. > :06:47.risk that it will hurt domestic demand. No choice is really the
:06:48. > :06:52.situation that describes the situation best in Japan right now.
:06:53. > :06:57.The government needs the economy to keep growing. It needs to balance
:06:58. > :07:01.the tax hikes. The supplementary budget is necessary. The next debate
:07:02. > :07:08.will be about the next tax hike that is supposed to happen in 2015. It
:07:09. > :07:15.also needs to work on tax cuts for corporations. That will lift
:07:16. > :07:18.sentiment in the economy. There will probably debate European policies
:07:19. > :07:31.like having different rates of value added tax. All of this will go into
:07:32. > :07:34.the parliamentary debate. Thank you. Let us preview on some other
:07:35. > :07:41.business stories. Shareholders of the Nokia have agreed to sell their
:07:42. > :07:47.friend Bob `` mobile phone business to Microsoft. It goes ahead despite
:07:48. > :07:58.objections from some investors who oppose the sale of a Finnish asset.
:07:59. > :08:04.Yahoo! Has boosted its share by about $5 billion. It aims to reward
:08:05. > :08:09.investors as the company looks to revive growth. The Internet search
:08:10. > :08:16.engine's plan is focused on acquisitions of smaller technology
:08:17. > :08:21.companies. Of course, Yahoo has been very much in focus ever since the
:08:22. > :08:25.appointment of a new chief executive. Prior to her
:08:26. > :08:31.appointment, it did go through a succession of chief executives in a
:08:32. > :08:41.very short period of time. All eyes to see this latest move by Yahoo! In
:08:42. > :08:46.terms of their management strategy. As well as starting a high`level
:08:47. > :08:51.meeting about sales tax in Japan, data out today is making headlines
:08:52. > :08:56.as well. Country's trade deficit doubled in the past 12 months as the
:08:57. > :09:03.rapidly rising energy bill pushed imports higher. Let us look at the
:09:04. > :09:12.markets. We are now joined from our bureau in Singapore. What is the
:09:13. > :09:15.latest. That is right. Japan is at a record trade deficit for October. It
:09:16. > :09:23.sought just about yen1 trillion. It record trade deficit for October. It
:09:24. > :09:34.so mainly due to expensive fuel
:09:35. > :09:36.purchases. Exports are rising. Departments are closed off and
:09:37. > :09:43.shattered ever since the Fukushima disaster. Exports or the biggest
:09:44. > :09:48.rise in three years. That is leading to hopes of a gradual pickup in
:09:49. > :09:58.global demand. Experts were up 18% in October. They were mainly being
:09:59. > :10:03.helped by the weaker again. The export growth has largely
:10:04. > :10:10.disappointed. You were talking to Mark and shorts. It has been helped
:10:11. > :10:17.by the payment Mr's massive monetary fiscal expansionary policy. And of
:10:18. > :10:21.course, that may continue to help. We continue to watch these trade
:10:22. > :10:28.figures every month. It may provide some relief for the government. That
:10:29. > :10:41.is the World Business Report. See you soon when we talk through the
:10:42. > :10:48.papers. The Church of England's ruling body
:10:49. > :10:50.is expected to take a significant step towards the creation of women