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havoc on fisheries and crops. Those are the late at headlines. Now for | :00:00. | :00:00. | |
the latest financial news with World Business Report. | :00:00. | :00:18. | |
It is a thumbs up from Wall Street as investors cheer on cuts by the | :00:19. | :00:32. | |
European Central bank. Plus, the hidden rain drain ` how corporate | :00:33. | :00:35. | |
America is trying to get women back into the workforce. | :00:36. | :00:41. | |
Welcome to World Business Report. I'm Aaron Heslehurst. We will be | :00:42. | :00:51. | |
talking about the big jobs numbers outside of the US. Let's start with | :00:52. | :00:56. | |
the market which had been celebrating the European Central | :00:57. | :00:59. | |
Bank move to cut its main interest rate to boost the region 's flagging | :01:00. | :01:04. | |
economy. The highlight of course ` imposing a | :01:05. | :01:07. | |
negative interest rate on deposits for the first time, effectively | :01:08. | :01:10. | |
charging banks to sit on their money to encourage them to lend it out. | :01:11. | :01:21. | |
The news has been going down pretty well with investors. On Wall Street, | :01:22. | :01:25. | |
US shares hit new all`time highs, with record closes on both the main | :01:26. | :01:30. | |
indices. The Dow Jones industrial average closed at a record | :01:31. | :01:36. | |
16,836.11. To put that in perspective, it's now up around 155% | :01:37. | :01:39. | |
since its low in March, 2009, during the financial crisis, the so called | :01:40. | :01:41. | |
bear market. If he bought in March, 2009, you did | :01:42. | :02:07. | |
even better. Is the enthusiasm rolling through into Asian markets? | :02:08. | :02:13. | |
Let's speak to Rico Hizon in Singapore. What are the Asian | :02:14. | :02:21. | |
markets doing? Generally upbeat. Stocks from Hong Kong, Australia, | :02:22. | :02:27. | |
India, all on the move. Emerging Asian currencies also strengthening | :02:28. | :02:34. | |
versus the dollar and the euro. By reducing negative interest rates, | :02:35. | :02:38. | |
this will make it cheaper for banks to lend money to businesses and this | :02:39. | :02:42. | |
cheap money could find its way right here in Asia's emerging economy. | :02:43. | :02:48. | |
Boral at 0% and invest it in high interest rate yielding products in | :02:49. | :02:55. | |
Asia. You would be looking at Thailand, for instance. Their | :02:56. | :03:00. | |
currency depreciated after the coup but things have stabilised. | :03:01. | :03:05. | |
Indonesia, Thailand, Korea, Singapore to a lesser extent, there | :03:06. | :03:09. | |
are opportunities to drive a better yield. In a low velocity | :03:10. | :03:16. | |
environment, you don't have to worry so much about adverse exchange rate | :03:17. | :03:19. | |
movements affecting the overall yield. Indonesia's growing rate is | :03:20. | :03:28. | |
17.5%, India at more than 8%, Australia 2.5%. In Brazil, interest | :03:29. | :03:34. | |
rates are 11%. But there are sceptics in the region. If the cheap | :03:35. | :03:38. | |
funding makes its way into the market, this could in `` ignite | :03:39. | :03:44. | |
inflation or push prices higher, in turn pressuring the central banks to | :03:45. | :03:47. | |
raise the cost of borrowing. Not good news for markets. Absolutely. | :03:48. | :03:50. | |
There could be a flood of cheap money but it highlights this out of | :03:51. | :03:59. | |
whack world. In the UK, in the US, the talk is all about raising. When | :04:00. | :04:03. | |
are they going to raise interest rates? But Europe is rushing to | :04:04. | :04:08. | |
battle stations. That's right. Moving in separate directions. | :04:09. | :04:14. | |
That's why there are investors here who are digestive and analysing what | :04:15. | :04:18. | |
kind of impact it will have four Asian markets. Europe is moving | :04:19. | :04:23. | |
towards zero interest rates. Then the US federal reserve is winding | :04:24. | :04:28. | |
down its bond buying programme. What kind of impact will it have on Asia? | :04:29. | :04:33. | |
If we have a look at the numbers, yes Asian markets are in positive | :04:34. | :04:41. | |
territory but not surging. There is still doubt over what kind of affect | :04:42. | :04:48. | |
the winding down of the bond buying programme and interest raising in | :04:49. | :04:52. | |
the US will have on Asian markets. I call it the big bazooka. Great | :04:53. | :05:01. | |
stuff. Thank you. Turning our attention from Europe to | :05:02. | :05:10. | |
the US. In particular, the health of its economy as markets await the | :05:11. | :05:16. | |
monthly jobs numbers. The month of May is likely to have been good for | :05:17. | :05:19. | |
job creation in the US because economists think American employees | :05:20. | :05:30. | |
hired around 218,000 people. Not quite the blow`out figure seen in | :05:31. | :05:33. | |
April, but still proof that the economy is recovering from its | :05:34. | :05:36. | |
winter slump. The US jobless rate is likely to have ticked up to 6.4%. | :05:37. | :05:40. | |
That could actually be seen as good news, showing that more of the | :05:41. | :05:43. | |
long`term unemployed are starting to look for work again. Remember, many | :05:44. | :05:48. | |
were simply off the books as they'd given up looking. One group who find | :05:49. | :05:54. | |
it particularly hard to get back in to the work force, women who have | :05:55. | :05:57. | |
taken time out to look after children. It's a massive but hidden | :05:58. | :06:02. | |
brain drain on the US economy, as Samira Hussain reports. | :06:03. | :06:14. | |
Some questions about your favourite things. Having weekday morning | :06:15. | :06:18. | |
breakfast with her three children was, until recently, a typical start | :06:19. | :06:24. | |
to this woman's day. Eight years ago she went from working in finance in | :06:25. | :06:27. | |
New York City to working at home for her family. It was difficult but | :06:28. | :06:33. | |
having young kids at home and knowing I wanted to spend more time | :06:34. | :06:36. | |
with them may bat transition easier. But now she is ready to go | :06:37. | :06:46. | |
back to work at an office. One company is helping her through an | :06:47. | :06:48. | |
employment programme for women re`entering the workforce after a | :06:49. | :06:53. | |
long absence. At the end, the hope is to get people like her back into | :06:54. | :07:00. | |
work. That means being able to come back and leave at a time that allows | :07:01. | :07:07. | |
me to tuck my kids into bed. Even if that means I get back online when | :07:08. | :07:11. | |
they are asleep. But being able to sit down, read to them is imported | :07:12. | :07:17. | |
to me. As many as 40% of women who are hardly educated and up leaving | :07:18. | :07:22. | |
the workforce for a period of time. A massive but hidden brain drain. | :07:23. | :07:27. | |
Retraining programmes certainly help but, for jobs, especially on Wall | :07:28. | :07:33. | |
Street, where the hours can be gruelling, finding an office culture | :07:34. | :07:39. | |
that is flexible enough to allow mothers a work and life balance can | :07:40. | :07:44. | |
be tough. Somebody has to take care of the children and those elderly | :07:45. | :07:48. | |
parents and that typically falls on women. If you do have family, if you | :07:49. | :07:52. | |
do have elderly parents and you want to come back to work, you need a | :07:53. | :07:57. | |
measure of flexibility and that's very difficult to find in many | :07:58. | :08:02. | |
workplaces. A few other banks are offering similar training. But, with | :08:03. | :08:08. | |
so many women struggling to get back into the workplace, for there to be | :08:09. | :08:12. | |
real change these programmes would need to be the norm and not the | :08:13. | :08:20. | |
exception. Those job numbers will be out in | :08:21. | :08:25. | |
about six hours. In other news, General Motors has accepted the | :08:26. | :08:28. | |
findings of a report into recalls of its Chevrolet Cobalt, calling it | :08:29. | :08:32. | |
"deeply troubling". GM took more than a decade to recall 2.6 million | :08:33. | :08:36. | |
cars over faulty ignition switches that it admits caused at least 13 | :08:37. | :08:39. | |
deaths. Lawyers suing the firm put the death toll at over 60. | :08:40. | :08:45. | |
Chief Executive Mary Barra said the Cobalt saga was riddled with | :08:46. | :08:48. | |
failures and that 15 employees have been fired. GM is launching a | :08:49. | :08:54. | |
compensation fund for crash victims and their families. | :08:55. | :08:57. | |
President Obama has dismissed suggestions he may help French bank | :08:58. | :09:08. | |
BNP Paribas, which is accused of violating the US sanctions and | :09:09. | :09:14. | |
facing a fine of up to $10 billion. France's President Hollande has | :09:15. | :09:16. | |
called the possible fine disproportionate, raising the issue | :09:17. | :09:19. | |
during talks between the two ahead of D`Day anniversary ceremonies in | :09:20. | :09:21. | |
Northern France. According to reports US regulators are also | :09:22. | :09:24. | |
pushing for the bank's chief operating officer to be sacked as | :09:25. | :09:26. | |
part of the settlement Bills `` settlement. Now for a quick look at | :09:27. | :09:36. | |
the markets. Everybody keeping an eye on those jobs numbers, when they | :09:37. | :09:41. | |
come out, from the US. The euro dropped slightly after the | :09:42. | :09:43. | |
announcement yesterday from the ECB but moved back up. Follow me on | :09:44. | :09:49. | |
Twitter. I will be back later to have a look at the papers from | :09:50. | :10:01. | |
around the world. Many of us can look up most nights and see this | :10:02. | :10:03. | |
familiar sight, but have you | :10:04. | :10:05. |