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checkpoint. Those are the headlines. Now it is | :00:00. | :00:00. | |
time to get the latest financial news. Russia's Davos put on eight | :00:00. | :00:24. | |
brave face, but many top bosses have stayed away. Plus, under cyber | :00:25. | :00:32. | |
attack and under the spotlight. EBay faces probe is in regards to its | :00:33. | :00:41. | |
security practices. Welcome to the programme. We will | :00:42. | :00:46. | |
take a fascinating and exciting snapshot of everything in the world | :00:47. | :00:52. | |
of business and money. It is time to wake up. We are going to talk about | :00:53. | :00:55. | |
Thailand's economy and Kennett shrug off the political turmoil. Let us | :00:56. | :01:02. | |
start with this. Let us start with this man right here. Russia's | :01:03. | :01:07. | |
President Putin will shortly be addressing global business leaders | :01:08. | :01:12. | |
at the Saint Petersburg International economic Forum. It is | :01:13. | :01:17. | |
Russia's version of Davos. It is supposed to promote the country to | :01:18. | :01:21. | |
foreign investors. But with tensions over Ukraine and the resulting | :01:22. | :01:24. | |
sanctions against Moscow, around 30 of the world's top losses have not | :01:25. | :01:31. | |
shown up. It has been rather awkward for Russia, but the real worry is | :01:32. | :01:37. | |
the exodus of money from the country. Let us take a look at some | :01:38. | :01:40. | |
of these numbers. The Russian Foreign Ministry believes investors | :01:41. | :01:45. | |
have pulled out $51 billion in the first three months. Earlier this | :01:46. | :01:50. | |
month the European Central bank had warned that the figure could be as | :01:51. | :01:58. | |
much as $220 billion. It has taken its toll on the currency. Moscow has | :01:59. | :02:04. | |
been desperately trying to prop up its currency. We are in Saint | :02:05. | :02:15. | |
Petersburg for the forum and have this report. | :02:16. | :02:23. | |
America asked some business chiefs to stay and some did, but others | :02:24. | :02:26. | |
said they need to be head to understand the risks. A lot of | :02:27. | :02:35. | |
companies did not send their CEOs. But everybody is present. That is | :02:36. | :02:41. | |
the kind of political statement, not to send the most important people. | :02:42. | :02:45. | |
Nobody doubts Russia is heading into recession, but not everybody was | :02:46. | :02:51. | |
gloomy. It is not the worst economy that is sure. Hopefully by seeing | :02:52. | :02:56. | |
more of small and medium business is growing. For seasoned advisers, one | :02:57. | :03:08. | |
worries about capital flight. Most of the capital is local capital | :03:09. | :03:13. | |
fleeing. There are members of the American chamber that have large | :03:14. | :03:18. | |
investment plans are continuing with them. It is not one way or the | :03:19. | :03:28. | |
other. Until now, the clear message from these forums is that Russia is | :03:29. | :03:32. | |
open to global business. For delegates it is not a boycott or | :03:33. | :03:39. | |
even sanctions. It is about how safe all the billions of dollars they | :03:40. | :03:42. | |
have invested in this economy is. They will be scanning every word the | :03:43. | :03:47. | |
President has to say today very carefully. | :03:48. | :03:55. | |
Let us talk more about this. In particular, the economic impact of | :03:56. | :04:01. | |
the crisis on the European region. Great to have you with us. Let us | :04:02. | :04:06. | |
start with that, the region and the impact. Germany, it has got the | :04:07. | :04:15. | |
biggest stake to lose. We have seen in the trade figures, the biggest | :04:16. | :04:24. | |
amount of exports in the year. Exports actually contracted from | :04:25. | :04:28. | |
growth in the first quarter. We can link that to the crisis? Definitely. | :04:29. | :04:35. | |
It is based on two fronts. The slowing down of China and what is | :04:36. | :04:38. | |
going on in Russia. They have massive treatments to Russia through | :04:39. | :04:44. | |
imports and exports. It is hitting businesses. Talking about this man. | :04:45. | :04:54. | |
I am always curious to know, how much is he prepared to give up, | :04:55. | :05:00. | |
prepared to lose in terms of economic numbers, in terms of | :05:01. | :05:03. | |
economic growth, to continue on the path he is walking? Russia was | :05:04. | :05:10. | |
heading to eat recession anyway. It almost gives them a valid excuse on | :05:11. | :05:18. | |
the election policy. This is the reason why Russia is in recession. | :05:19. | :05:23. | |
But it was there before. It does not give him a valid excuse to justify a | :05:24. | :05:26. | |
recession that was already happening. But he is looking more | :05:27. | :05:35. | |
towards China. It is a long`term view. But hopefully there is more | :05:36. | :05:41. | |
opportunity. We will see the effect is hitting Europe, particularly | :05:42. | :05:48. | |
Germany. The biggest question, what does Germany do? If Russia's focus | :05:49. | :05:55. | |
is to look east, not forget that Europe, but concentrate on the east, | :05:56. | :06:02. | |
and its make up for the amount of money, possibly $220 billion so far | :06:03. | :06:14. | |
taken out, can that be made up? It is about people pulling that money. | :06:15. | :06:23. | |
We have seen that the impact. I think in some way it is just capital | :06:24. | :06:31. | |
flight. It is speculative. I can see the money going back. We had a | :06:32. | :06:39. | |
massive riot in Britain. It could soon be a good time to buy in | :06:40. | :06:46. | |
Russia. We are not going to see any more strong sanctions in Russia. We | :06:47. | :06:51. | |
have seen a lot of resistance on the ground in Europe. Some of the big | :06:52. | :06:55. | |
German companies have said, we do not want these. It is a double`edged | :06:56. | :07:05. | |
sword. It is going to be interesting to watch. We appreciate your time at | :07:06. | :07:15. | |
this hour. Let us turn our attention to eBay. I am sure you know about | :07:16. | :07:26. | |
eBay advising its users to change their passwords after revealing | :07:27. | :07:32. | |
hackers had broken into its personal database. The York's attorney | :07:33. | :07:41. | |
general is demanding the company provide free help to those | :07:42. | :07:51. | |
struggling with identity theft. It has been pursued not just by | :07:52. | :07:56. | |
regulators in New York, but also by three attorney generals from three | :07:57. | :08:00. | |
different states. I have talking about Connecticut, Florida and | :08:01. | :08:04. | |
Illinois. Have all announced investigations into eBay and what | :08:05. | :08:07. | |
happened at the company. Specifically, they are focusing on | :08:08. | :08:12. | |
eBay's measures for securing personal data, the circumstances | :08:13. | :08:15. | |
that led to this breach and how many users were affected. We have heard | :08:16. | :08:25. | |
all sorts of complaints about the security breach, not from the | :08:26. | :08:31. | |
company itself, but from the media. They are still waiting and that is | :08:32. | :08:39. | |
part of the issue. Where I am, the New York attorney general has said | :08:40. | :08:43. | |
that he would like the company to provide free credit monitoring for | :08:44. | :08:46. | |
its customers. The attack is also being investigated by the FBI and by | :08:47. | :08:56. | |
cyber forensics. Back to the top story. The seizure of power in | :08:57. | :09:02. | |
Thailand by the army in that military coup yesterday. Since | :09:03. | :09:07. | |
martial law was declared, foreign investors have pulled some $400 | :09:08. | :09:11. | |
million out of the Thai stock market. How is the business world | :09:12. | :09:19. | |
reacting? Linda, you know I was talking about this as the route at | :09:20. | :09:28. | |
`` story. The irony is, we would not often say that a coup would be good | :09:29. | :09:35. | |
news for the economy. It often gets rid of the political stalemate and | :09:36. | :09:38. | |
the possible to think of islands on the streets. Thailand is the | :09:39. | :09:44. | |
unusual. Typically speaking, when you mention martial law, the market | :09:45. | :09:53. | |
reacts really badly. Instability. Thailand is unusual in the sense | :09:54. | :09:57. | |
that this is the 12 coup since the 1930s when the monarchy was | :09:58. | :10:04. | |
abolished as a ruling power. Markets are somewhat used to it. The | :10:05. | :10:08. | |
military has a legal right to intervene. You do see that reaction | :10:09. | :10:14. | |
in terms of the markets feeling stable. The currency is up against | :10:15. | :10:22. | |
the US dollar today. The benchmark index is still slightly down. | :10:23. | :10:26. | |
Foreign investors have pulled their money out of Thai stocks. | :10:27. | :10:35. | |
Significantly around the region, stock markets in Asia are up and up | :10:36. | :10:39. | |
at the highest level since early January for the Feds started | :10:40. | :10:47. | |
tapering. `` before. Nothing is quite as we would expect in terms of | :10:48. | :10:53. | |
market reaction. Still a lot to wait for when the Thai government | :10:54. | :10:58. | |
announces. We will talk to you soon. | :10:59. | :11:03. | |
I will be back shortly to take a look at some of the headlines. Hello | :11:04. | :11:19. | |
again. The US coastguard has | :11:20. | :11:21. |