06/05/2014

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:00:00. > :00:00.house was empty at the time. Those are the latest headlines from

:00:00. > :00:19.BBC World News. Now for the latest financial news with Sally.

:00:20. > :00:25.What really happened duringite rish banking crisis. Now Parliament is

:00:26. > :00:28.discussing setting up an inquiry to find out.

:00:29. > :00:37.From eBay seller to running a fashion empire. We talk to the ent r

:00:38. > :00:40.epeneur behind the Nasty Girl brand. `` entrepeneur.

:00:41. > :00:44.A very warm welcome. You're with World Business Report. Also in the

:00:45. > :00:47.programme: Tough economic decisions ahead in

:00:48. > :00:50.Australia. They could prove to be very unpopular. We'll have the

:00:51. > :00:53.details for you. But first of all, let's focus on Ireland and the

:00:54. > :00:58.Parliament there today is expected to discuss setting up an inquiry in

:00:59. > :01:03.to the 2008 banking crash which virtually brought the country to its

:01:04. > :01:07.knees and forced Ireland in to an international bailout and a very

:01:08. > :01:11.painful process of austerity. Six years on, mystery persists over what

:01:12. > :01:18.actually happened behind closed doors in the run`up to the financial

:01:19. > :01:22.crisis. Ireland is still reeling from the

:01:23. > :01:28.shock waves of the banking crash which cost the country 64 billion

:01:29. > :01:32.euro. It brought economic collapse forcing an international bailout and

:01:33. > :01:38.austerity which continues. A decade of gloom driven by wreckless `` of

:01:39. > :01:41.boom driven by wreckless ending ended with the property crash. Banks

:01:42. > :01:46.were starved and struggled to keep going and it is what happened next

:01:47. > :01:50.which is under scrutiny. Late one evening, senior bankers arrived at

:01:51. > :01:55.government buildings in Dublin to warn Ireland's banking system faced

:01:56. > :01:59.collapse. The coalition government agreed in the early hours to

:02:00. > :02:03.underwrite all Irish bank deposits with Cabinet ministers in their beds

:02:04. > :02:07.agreeing by phone. But this short`term fix had major long`term

:02:08. > :02:12.impacts. The Irish state was tied directly to the unknown liabilities

:02:13. > :02:16.of private banks. These were to prove too large to sustain, leading

:02:17. > :02:19.to disaster. But mystery and secrecy remains over what precisely happened

:02:20. > :02:25.that night and what advice was given. We need to know the truth.

:02:26. > :02:29.And we now have evidence on every street you walk down and every door

:02:30. > :02:33.you knock on and every place, both town and village and parish around

:02:34. > :02:40.the country, the catastrophic consequences of the light touch

:02:41. > :02:47.regular gags introduced by Fianna a Fial. `` regulation. Last month,

:02:48. > :02:52.former chairman of Anglo`Irish Bank, Sean Fitzpatrick, was cleared of all

:02:53. > :02:56.charges of illegal lending at the bank with some losses of 30 billion

:02:57. > :03:00.euro. The new parliamentary inquiry is limited and prevented by law from

:03:01. > :03:03.apportioning blame, which will mean that the first public hearings with

:03:04. > :03:08.key politicians compelled to attend. Many in Ireland will be hoping that

:03:09. > :03:13.the inquiry will help to unravel some of the mystery ofs of Ireland's

:03:14. > :03:18.banking crash, which have cost the country dear.

:03:19. > :03:22.Let's now talk about what's going on at the tech crunch event because

:03:23. > :03:27.what began as a woman's desire to work for herself has turned in to a

:03:28. > :03:34.multi`million dollar business. Nasty Girl is an online retailer that got

:03:35. > :03:43.its start by selling vintage clothing on eBay. Nasty Girl now has

:03:44. > :03:48.its own clothing line and is called one of the fastest growing retailers

:03:49. > :03:53.of the United States. Its founder will be talking at Tech Crunch, the

:03:54. > :03:56.annual boot camp in New York for start`ups. Our correspondent went to

:03:57. > :04:01.meet her. This is Tech Crunch in New York `

:04:02. > :04:05.the place to be if you're a start`up looking for some funding or even

:04:06. > :04:09.wanting some advice from other success stories. It's events like

:04:10. > :04:17.these that give many tech companies their first big break. But Sofia

:04:18. > :04:23.Amaruso has a different story. The founder of the online retailer Nasty

:04:24. > :04:28.Gal got her start not here, but using eBay, and is now one of tech's

:04:29. > :04:32.biggest stars. You know, when I started the eBay store, I was trying

:04:33. > :04:37.to work for myself. I had no idea that when I chose the idea Nasty

:04:38. > :04:41.Gal, I would be saying it seven years later, but it worked. At one

:04:42. > :04:46.point, your company was named the fastest growing retailer in the

:04:47. > :04:49.United States. To what do you credit that success? The e commerce

:04:50. > :04:53.landscape has changed since we began, but we've always carried

:04:54. > :04:59.really unique pieces starting with vintage. The with the most editorial

:05:00. > :05:03.vintage pieces, super crazy memorial vintage pieces and that was my

:05:04. > :05:08.buying training. And we went out to trade shows and now we're designing

:05:09. > :05:12.and designing for a girl with an appetite for something unique. Do

:05:13. > :05:16.you consider yourself a tech company? E`commerce is what we do.

:05:17. > :05:19.We use technology but I don't know what business doesn't use

:05:20. > :05:26.technology. I wouldn't call us a tech company, but I wouldn't call us

:05:27. > :05:29.a traditional retailer either. Many e`commerce sites are opening bricks

:05:30. > :05:32.and mortar stores. Is that something that you're considering and is that

:05:33. > :05:36.also something that's necessary for these kinds of companies? We will be

:05:37. > :05:41.opening stores within the next year, which I'm really excited about.

:05:42. > :05:46.We'll start in LA. I think that the brand is best experienced in all

:05:47. > :05:49.channels, so while some people have to go offline to continue growing,

:05:50. > :05:54.maybe their business is more niche, for us, it is really a choice. I

:05:55. > :05:57.want to let our customers touch and feel our clothes. I want to see

:05:58. > :06:00.someone run out of a store happy with a shopping bag. I've never had

:06:01. > :06:04.that experience. It's a lot of people talking on social media,

:06:05. > :06:07.which is awesome and I love that. But being able to hang out with the

:06:08. > :06:12.customer in the real world is the most exciting thing. It's exactly

:06:13. > :06:22.that experience ` of physically finding something perfect, that made

:06:23. > :06:27.Nasty Gal. She created Nasty Gal there.

:06:28. > :06:31.Now, let's talk about what's going on in Australia. The there is

:06:32. > :06:34.grappling with some unpopular economic choices that could prove to

:06:35. > :06:36.be politically toxic. Our correspondent is in our Asia

:06:37. > :06:41.business hub in Singapore and I know that you're recently back from

:06:42. > :06:45.Australia, so talk us through what's going on. Well, you know, Sally,

:06:46. > :06:50.it's a bit of a moot point about how tough the government has to be in

:06:51. > :06:56.Australia, and that's why all of this pre`Budget speculation is

:06:57. > :07:00.causing so much angst. The Federal Budget is due next week. They're

:07:01. > :07:03.expected not to touch interest rates because the economy is picking up

:07:04. > :07:06.speed, but when it comes to the Budget, the Australian government is

:07:07. > :07:10.saying repeatedly to anyone who will listen that everyone has to do the

:07:11. > :07:13.heavy lifting and the government can't keep paying more and more out

:07:14. > :07:19.and the spending has to be brought in. To tell you about the unpopular

:07:20. > :07:22.things on the table or confirmed. A deficit reduction levy that would

:07:23. > :07:26.temporarily increase the top tax rate. That's gone down with a lead

:07:27. > :07:29.balloon, including with members of the government itself. And also cuts

:07:30. > :07:33.to the pension, or at least delays to when you can get one. That's

:07:34. > :07:38.already been announced. The retirement age will be pushed out to

:07:39. > :07:42.70 in the decades to come. That's caused an uproar because even though

:07:43. > :07:44.relative to the US, Australia has pretty low unemployment rates, there

:07:45. > :07:48.are still a lot of people who can't get work and they reasonably ask

:07:49. > :07:53.that if no`one is going to employ them in their prime working age, who

:07:54. > :07:57.is going to hire them when they're 65 or 6 or 69. Alright, we have to

:07:58. > :08:00.leave it there but we'll discuss the politics behind all of that when we

:08:01. > :08:04.talk to you again. It sounds very familiar, doesn't it! Retirement age

:08:05. > :08:09.going up. Let's look at other business

:08:10. > :08:11.stories. Coca`Cola is planning to remove a controversial ingredient

:08:12. > :08:17.from some of its brands by the end of the year following an online

:08:18. > :08:24.petition. BVO is found in Coca`Cola's fruit and sports drinks

:08:25. > :08:28.like Fanta and Powerade. There are concerns that an element is also

:08:29. > :08:34.found in flame retardants. Pepsi removed it from the Gatorade sports

:08:35. > :08:44.drink last year. The insurants group AIG has reported

:08:45. > :08:47.a 27% drop in quarterly profits. The company's net income fell to $1. 6

:08:48. > :08:52.billion, down from $2 million at the same time last year.

:08:53. > :08:57.And shares of Apple closed above $600 for the first time since 2012.

:08:58. > :09:00.Analysts say that this is because investors are more optimistic about

:09:01. > :09:06.the iPhone and new product launches later this year and the company's

:09:07. > :09:11.share buy`back programme. And Apple has revealed the stock compensation

:09:12. > :09:16.for the retail chief on last night's closing price is worth just over $68

:09:17. > :09:20.million. She was the former CEO of Burleyy.

:09:21. > :09:26.Nice if you can get `` Burbury. Let's have a look at the markets

:09:27. > :09:29.now: Japan is shut and Hong Kong is closed and South Korea is closed.

:09:30. > :09:32.These markets are all trading, as you can imagine, a quiet session

:09:33. > :09:37.because the key markets are closed tau. Among the stories being watched

:09:38. > :09:41.is the Australian interest rates decision that's coming in a few

:09:42. > :09:45.hours' time. Also, Janet Yellen will testify before the Senate tomorrow

:09:46. > :09:48.talking about their move at the Federal Reserve to draw back on the

:09:49. > :09:53.stimulus, so more questions on that. They're all looking ahead to that.

:09:54. > :10:04.And that's World Business Report. See you soon.

:10:05. > :10:09.Many thanks to Sally for that. We'll get to the papers in a moment.

:10:10. > :10:12.First, though: A shortage of beds with forcing some

:10:13. > :10:14.mental health patients in England to travel hundreds of miles for

:10:15. > :10:19.treatment or even to sleep on mattress on the floor. Earlier this

:10:20. > :10:24.year, one patient was admitted to a unit for the deaf because no beds

:10:25. > :10:25.were available anywhere in England. Our social affairs