05/12/2013

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:00:00. > :00:00.Thousands of protesters angry at the government decision not to sign an

:00:00. > :00:00.association deal with the European Union. Now for the latest financial

:00:00. > :00:25.news with Sally. Britain's economy is bouncing back

:00:26. > :00:28.but the austerity is not over. That is the message we are expecting from

:00:29. > :00:36.Chancellor George Osborne has the abilities Autumn statement. Waging

:00:37. > :00:47.the war on fast food giants, workers wage war across a wage.

:00:48. > :00:52.Welcome, you are with World Business Report. Also in the programme we

:00:53. > :00:57.will talk about Qantas because shares diving in the company, it has

:00:58. > :01:01.announced a profit warning and job cuts. First, we start in the UK

:01:02. > :01:07.where Chancellor George Osborne delivers his autumn budget statement

:01:08. > :01:11.to Parliament in a few hours. Britain's economy has made an

:01:12. > :01:15.unexpectedly strong return to growth this year after a long period of

:01:16. > :01:20.stagnation. He is expected to say that it will grow by 2.5% or more

:01:21. > :01:26.next year. That would make it one of the best performing developed

:01:27. > :01:32.economies. However, it is one of the most indebted as well. A national

:01:33. > :01:41.debt of ?1.2 trillion. It cost tens of billions in interest every year.

:01:42. > :01:45.The austerity will continue with new government cuts of ?1 billion per

:01:46. > :01:51.year for the next three years, according to a leaked report, and is

:01:52. > :01:57.a steady rise in the retirement age. Britons may not get a state 's

:01:58. > :02:00.pension until they are 70, those under 18 years old now. There are

:02:01. > :02:10.expected to be some tax breaks and handouts. Particularly to help with

:02:11. > :02:15.energy bills. I have the head of European research at Standard

:02:16. > :02:19.Chartered with me. Everybody will be digesting what was said and picking

:02:20. > :02:23.apart. What you think will say? I think he will be emphasising the

:02:24. > :02:28.economic recovery and emphasising the good news and also at the same

:02:29. > :02:35.time he does not want people to expect too much too soon. As you

:02:36. > :02:40.said, there is an election coming up, there is another budget to come

:02:41. > :02:48.before that, I think that what is what he is what -- wanting to do now

:02:49. > :02:51.is that business holds up and that business in the private sector can

:02:52. > :03:00.counteract the cut in the public sector. Has he got it right? Anyone

:03:01. > :03:03.looking at the state of the economy now will say perhaps even has. Plan

:03:04. > :03:11.a seemingly worked, they announced infrastructure spending as well.

:03:12. > :03:15.That is a lot of investment. Do you think they are on the right path, an

:03:16. > :03:19.election in 2015, things will be steered to win votes. If you look at

:03:20. > :03:24.the economic recovery than it does appear to be reasonably broad base.

:03:25. > :03:30.Of course, there is quite a lot of support from the housing sector and

:03:31. > :03:34.that is where some policymakers are somewhat worried that house prices

:03:35. > :03:39.are rising in parts of the country to quickly and recovery, to a

:03:40. > :03:42.certain extent is based on housing. We don't want to go through another

:03:43. > :03:46.boom and bust and I think this is why the Chancellor is going to be

:03:47. > :03:52.emphasising businesses and the need for investment to really pick up

:03:53. > :03:56.between now and the election. How healthy is the recovery from your

:03:57. > :04:02.point of view, clearly we are looking at what they are talking

:04:03. > :04:05.about, 2.5% growth in the year future -- near future. Interest

:04:06. > :04:11.rates could go up. How healthy is the economy as a whole, we still

:04:12. > :04:16.hear about a lot of people, the poverty and of the scale, having a

:04:17. > :04:24.difficult time. In terms of growth, the economy is looking in good

:04:25. > :04:28.shape, we have been a very prolonged downturn and period of economic

:04:29. > :04:31.meekness. You would anticipate that in economy would bounce back after

:04:32. > :04:36.that. There are certainly some pockets of the economy that are

:04:37. > :04:42.vulnerable. Wages have fallen in real terms over the last few years.

:04:43. > :04:46.Many people are still finding it very difficult, some people just

:04:47. > :04:53.don't have enough to make ends meet. Overall, I think the outlook is

:04:54. > :04:58.probably improving, the Bank of England will be very cautious not to

:04:59. > :05:04.raise interest rates too soon. That could cut short the recovery and

:05:05. > :05:08.raises all sorts of issues about households that are very indebted

:05:09. > :05:14.and mortgages that are particularly high at the moment. Thank you very

:05:15. > :05:19.much for your time. There will be a lot of information for you on the

:05:20. > :05:23.BBC website and BBC News. Television and radio as the statement kicks off

:05:24. > :05:27.today. Let's move on. They are calling it the fight for 15. US

:05:28. > :05:32.workers in the fast food industry are planning a wave of strikes

:05:33. > :05:36.today, demanding pay $15 an hour a day after the president called the

:05:37. > :05:40.growing gap between the rich and poor the defining challenge our

:05:41. > :05:45.time. Low-paid employees from chains McDonald's, Wendy's and Taco Bell

:05:46. > :05:53.are expected to walk off the job in 100 cities around the country.

:05:54. > :05:58.America's stock market is booming. Corporate profits are up. Although

:05:59. > :06:06.the economy may be improving, the gains have not been shared equally.

:06:07. > :06:12.31 -year-old Morris Royal earns $7.25 an hour. Working at Burger

:06:13. > :06:14.King. Not enough he says to afford anywhere to live.

:06:15. > :06:20.King. Not enough he says to afford shelter right now. I have been in a

:06:21. > :06:26.shelter for a month now. Struggling, trying to get special

:06:27. > :06:32.assistance. His frustration is shared by many.

:06:33. > :06:39.The fast food strikes that started in New York a year ago are expected

:06:40. > :06:42.to spread to 100 cities on Thursday. They are calling for $15

:06:43. > :06:48.an hour. More than double the national minimum wage. They want the

:06:49. > :06:50.right to form a union. Applicants for the restaurant industry

:06:51. > :06:56.questioned who will pay for these wage increases. The model of the

:06:57. > :07:01.fast food industry was to provide jobs for people starting at a low

:07:02. > :07:08.wage. It is not designed to have a long time people. If we change the

:07:09. > :07:13.business model, it will be difficult to maintain the business model. )

:07:14. > :07:19.the growing gap of the rich and poor has not escaped the attention of the

:07:20. > :07:31.White House. President Obama defining it as the defining message

:07:32. > :07:36.of our time. Increase. The timing of remarks is likely to draw more

:07:37. > :07:40.attention to the protests. Fast food jobs represent a growing part of the

:07:41. > :07:47.economy, the challenge of making ends meet on a low wage is going to

:07:48. > :07:53.hit home. That is why the protest that started in New York is finding

:07:54. > :08:00.a larger audience. Shares in Qantas slumped to an 18

:08:01. > :08:06.month low this morning of the Australian airline. It announced

:08:07. > :08:12.1000 job cuts. Carter says a marked deterioration in profits, it is set

:08:13. > :08:15.to lose $270 million in the half of the year. It is struggling with

:08:16. > :08:26.fierce competition from virgin Australia. Tell us a bit more about

:08:27. > :08:31.the challenges Qantas and why it has had to go down this road of cutting

:08:32. > :08:38.jobs yet again. Sally they have been struggling for some time now,

:08:39. > :08:43.increased competition has been a key factor higher costs and a subdued

:08:44. > :08:48.travel market around the world has seen at international operation make

:08:49. > :08:51.losses. That has been a drag on its profitability. Owning the contest

:08:52. > :08:56.domestic operations have shrunk as well. Making life a bit more

:08:57. > :09:02.difficult. If you break down the numbers, that translates into a loss

:09:03. > :09:12.of $1.5 million per day. Investors are not happy with that. We will get

:09:13. > :09:18.their shares in a moment. Trading in Australia. Apple has struck a deal

:09:19. > :09:24.with China Mobile to offer the iPhone on its network. Those

:09:25. > :09:35.reporting in the Wall Street Journal. China has been issued with

:09:36. > :09:37.four G licences. It has 700 million subscribers. One of the last in the

:09:38. > :09:43.world that does not offer the iPhone at the moment. A big story in

:09:44. > :09:47.Australia is Qantas. at the moment. A big story in

:09:48. > :09:51.Australia is It shares have dropped by 15% by midday in Australia.

:09:52. > :09:58.Today, you can see the market there is down by 1.5%, Japan has lost a

:09:59. > :10:03.bit of ground, down by 1.6%, Standard Chartered has also issued a

:10:04. > :10:15.profits warning. Its shares slumping in Hong Kong. It lets look at the

:10:16. > :10:16.United States. It has been a mixed colours. That is all from me for the

:10:17. > :10:19.time being. United States. It has been a mixed

:10:20. > :10:21.colours. That is all I'll be back to review the papers in a few