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Now for the latest financial news with Sally. | :00:08. | :00:16. | |
What did the Bank of England know about manipulation of the foreign | :00:17. | :00:22. | |
exchange markets? The governor faces a grilling by UK politicians. | :00:23. | :00:27. | |
Three years on from the Fukushima nuclear disaster we assess the fall | :00:28. | :00:30. | |
out on the global energy industry. Welcome to World Business Report. | :00:31. | :00:46. | |
I'm Sally Bundock. Also in the programme, Whitemoor in Asia are | :00:47. | :00:49. | |
turning to the pawn shop as a means of meeting their financial needs. | :00:50. | :00:52. | |
The governor of the Bank of England Mark Carney faces some tough | :00:53. | :00:55. | |
questioning from UK lawmakers today. Members of Parliament on the | :00:56. | :00:57. | |
influential Treasury Select committee are expected to ask him | :00:58. | :01:00. | |
exactly what Bank officials knew about allegations that key prices on | :01:01. | :01:02. | |
the London foreign exchange markets were being manipulated as long as | :01:03. | :01:10. | |
eight years ago. The Bank of England has already suspended one employee | :01:11. | :01:13. | |
and more than 20 traders from major banks including Deutsche, Citigroup | :01:14. | :01:15. | |
and Barclays have been suspended or asked to leave. Nigel Cassidy | :01:16. | :01:25. | |
reports. This is the second scandal to taint | :01:26. | :01:34. | |
household name banks in London and also potentially, the Central Bank | :01:35. | :01:38. | |
in charge of them. The Bank of England governor, Mark Carney, faces | :01:39. | :01:42. | |
tough questions over his institution monitored conduct around the London | :01:43. | :01:49. | |
fix of currency rates. The concern is that the deal will place large | :01:50. | :01:52. | |
trades close to the price setting deadlines. Adding the price up and | :01:53. | :01:58. | |
allowing others in the know to sell later at a profit at the expense of | :01:59. | :02:04. | |
investors everywhere. What is clear is that beyond today's testimony, | :02:05. | :02:07. | |
the frantic examination of what officials said and did and to who is | :02:08. | :02:13. | |
still at an early stage. Minutes of meetings here at the Bank of England | :02:14. | :02:17. | |
show that it was aware of allegations of possible price-fixing | :02:18. | :02:22. | |
on the foreign exchanges as early as July 2006. Officials at held | :02:23. | :02:30. | |
meetings with traders. They later investigation and an examination of | :02:31. | :02:33. | |
thousands of documents show there has been no collusion. The Governor | :02:34. | :02:38. | |
is under extreme pressure. To say why after eight years there has been | :02:39. | :02:45. | |
no decisive enquiry. As the city goes to work as usual, what could | :02:46. | :02:51. | |
come out of all this? It will at least embarrass the bank into | :02:52. | :02:54. | |
thinking about, was that a culture of condoning or turning a blind eye | :02:55. | :03:01. | |
to this kind of manipulation of a major benchmark exchange rate? It | :03:02. | :03:08. | |
may be just that traders believe there was anecdotal evidence, there | :03:09. | :03:11. | |
was some evidence that the rate was being manipulated but it was not for | :03:12. | :03:15. | |
serious enough in order to warrant an investigation. That is not good | :03:16. | :03:19. | |
enough for one of the world's major central banks. With 40% of the | :03:20. | :03:26. | |
currency trades going through the city, London's reputation is | :03:27. | :03:30. | |
everything. The Bank of England governor is set to pull out all the | :03:31. | :03:34. | |
stops to resolve some of the 100 questions of out his rank's actions | :03:35. | :03:42. | |
or in action. As the day progresses we will update on how he gets on. | :03:43. | :03:47. | |
Three years ago today, a devastating earthquake struck Japan and | :03:48. | :03:49. | |
triggered a tsunami that killed almost 16,000 people. It sparked the | :03:50. | :03:55. | |
Fukushima nuclear crisis and as a result, Japan ceased all its nuclear | :03:56. | :03:58. | |
energy output and other countries around the world followed suit. In | :03:59. | :04:06. | |
Europe Germany will phase out nuclear energy production by 2022, | :04:07. | :04:08. | |
while French President Francois Hollande says France will cut its | :04:09. | :04:11. | |
nuclear output sharply - the current target being, by a third in 20 years | :04:12. | :04:14. | |
By contrast, the UK remains committed to new nuclear power | :04:15. | :04:16. | |
plants. So, three years on from the | :04:17. | :04:27. | |
Fukishima disaster, what is the future of nuclear? Could something | :04:28. | :04:32. | |
take its place, or is it one way Europe can avoid being too dependent | :04:33. | :04:38. | |
on Russian gas. For more on this, I am now joined by Nuclear expert | :04:39. | :04:46. | |
Malcolm Grimston. If we could talk about Japan to start with. They were | :04:47. | :04:51. | |
an economy that relied heavily on nuclear. This event took place which | :04:52. | :04:55. | |
obviously changed everything. In more ways than one. How has it | :04:56. | :05:02. | |
managed to keep on since? Before the earthquake, Japan was the largest | :05:03. | :05:08. | |
importer of national gas. It is an island with no electricity | :05:09. | :05:12. | |
connections to anywhere else. They have kept lights on but the price | :05:13. | :05:16. | |
they have paid economically, the fuel cost has doubled in the course | :05:17. | :05:21. | |
of the last three years in Japan. And environmentally, they did have a | :05:22. | :05:27. | |
target to cut emissions by 25%. Last December, the government said they | :05:28. | :05:32. | |
now had a target to increase them. They have had to ride coach and | :05:33. | :05:36. | |
horses through their economy, they had a trade deficit in the first | :05:37. | :05:43. | |
time in 30 years because of the imports of fossil fuels in | :05:44. | :05:47. | |
particular. They have entirely abandon their greenhouse gas | :05:48. | :05:50. | |
targets. It has been a remarkable achievement, nuclear was generating | :05:51. | :05:57. | |
a large amount of their electricity. Directly after the accident, the | :05:58. | :06:02. | |
lights have stayed on. What is viewed now in Japan? They have not | :06:03. | :06:06. | |
closed the door on nuclear by any means. They are hoping to open some | :06:07. | :06:13. | |
plants soon? They published a basic energy plan last month. That state | :06:14. | :06:18. | |
very clearly that nuclear energy will remain an important source of | :06:19. | :06:23. | |
electricity. All of their plans are off-line at the moment for safety | :06:24. | :06:26. | |
assessments. Most people are saying it is practically impossible that | :06:27. | :06:34. | |
all of those will come back online. Three quarters of those will resume | :06:35. | :06:38. | |
generation. There are 17 or 18 in front of the regulator at the | :06:39. | :06:43. | |
moment. If they get permission, they could be back online in one year. | :06:44. | :06:50. | |
It's all a large shift in Europe. Germany has always been a bit | :06:51. | :06:56. | |
uncomfortable with nuclear? Your Mac those countries in the middle of | :06:57. | :07:01. | |
Europe such as Germany have tended to be a bit more pot off by this. | :07:02. | :07:07. | |
The United Kingdom, Scandinavia, Poland, the luckier, Bulgaria, those | :07:08. | :07:15. | |
are countries that have not changed their nuclear policy at all. China | :07:16. | :07:20. | |
has continued to build more stations. There are more stations | :07:21. | :07:25. | |
under construction now then in the last 15 years. Thank you very much. | :07:26. | :07:33. | |
We did not have time to talk about the situation in Crimea. Let's | :07:34. | :07:35. | |
squeeze in some other business stories. | :07:36. | :07:41. | |
Shares in some of the world's biggest mining companies continue to | :07:42. | :07:46. | |
slide due to a slump in the price of iron ore, amid fears of a slowdown | :07:47. | :07:49. | |
in China's economy. Iron ore delivered into China fell 8.3% on | :07:50. | :07:52. | |
Monday after Beijing reported weak export data. China is one of the | :07:53. | :07:55. | |
biggest consumers of the commodity and there are concerns a slowdown in | :07:56. | :07:58. | |
its economy may impact miners' profits. The E-commerce giant eBay | :07:59. | :08:07. | |
has cut its chief executive's pay by more than half. The company said | :08:08. | :08:10. | |
that while John Donahoe had performed well, the company's | :08:11. | :08:12. | |
financial performance had not fully met expectations. Mr Donahoe was | :08:13. | :08:14. | |
paid more than $13-million dollars including bonus in 2013, down from | :08:15. | :08:17. | |
more than $29 million a year earlier. | :08:18. | :08:21. | |
Mt.Gox, the Tokyo-based Bitcoin exchange that collapsed last month | :08:22. | :08:24. | |
after the loss of about 474 million dollars worth of Bitcoins, has filed | :08:25. | :08:27. | |
for bankruptcy protection in the United States. The petition - to be | :08:28. | :08:37. | |
heard in a court in Chicago - is expected to rule on whether a US | :08:38. | :08:40. | |
class action lawsuit can go ahead against the company. If the petition | :08:41. | :08:43. | |
is successful, lawsuits in the US against the Japanese company would | :08:44. | :08:45. | |
be temporarily halted. Let's talk you through financial | :08:46. | :08:58. | |
markets. We have talked about the fact that among the losers in Asia | :08:59. | :09:05. | |
today, we saw a drop off yesterday. The market in general as you can see | :09:06. | :09:14. | |
are bouncing back. Hong Kong is up marginally. The news about China is | :09:15. | :09:19. | |
still spooking investors to a degree around the world. Investors are | :09:20. | :09:24. | |
concerned about the outlook. I am trying to bring up the details on | :09:25. | :09:34. | |
the United States for you. You can see the dollar is buying just over | :09:35. | :09:40. | |
103 yen. The yen is relatively weak. Keep an eye on Mark Carney later. | :09:41. | :09:47. | |
That will be an interesting session taking place here in London later | :09:48. | :09:53. | |
on. That is all from me now. Stay with us. | :09:54. | :10:06. | |
Researchers say children in the UK are at risk of strokes and heart | :10:07. | :10:11. | |
disease in later life because they're eating too much salt. That's | :10:12. | :10:18. | |
despite the government's drive to cut sodium levels in food. In the | :10:19. | :10:21. | |
biggest study of its kind, they found much of the salt comes from | :10:22. | :10:24. | |
breads and cereals. And unless that changes, Britain could be storing up | :10:25. | :10:27. | |
health problems for the future. | :10:28. | :10:28. |