11/07/2014

Download Subtitles

Transcript

:00:00. > 3:59:59BBC World News. Now for the latest financial news with Aaron Heslehurst

:00:00. > :00:20.in World Business Report. The Eurozone's ghosts return. Global

:00:21. > :00:27.markets rattled by fears of a new banking crisis in Portugal. Plus,

:00:28. > :00:40.Formula one without the fumes and the noise. Yes, move over petrol

:00:41. > :00:50.heads. We take a look at Formula E. Welcome to World Business Report.

:00:51. > :00:58.I'm Aaron Heslehurst. We're going to meet the students they call the Mark

:00:59. > :01:04.Zuckerberg of Italy as the latest in our series on the next generation of

:01:05. > :01:06.millionaires coming but first... We start with Portugal because global

:01:07. > :01:09.markets have been rattled by fears the country could be facing new

:01:10. > :01:12.financial difficulties. Portugal, along with Greece and Ireland, was

:01:13. > :01:15.of course at the epicentre of the European debt crisis. It got a 100

:01:16. > :01:19.billion dollar rescue from the EU and IMF and exited the bailout less

:01:20. > :01:23.than two months ago with a clean bill of health. Problems over? Maybe

:01:24. > :01:30.not. The worries centre around this: Banco Espirito Santo, the biggest

:01:31. > :01:37.bank on Portugal's stock market. Its shares plunged 19% on Thursday

:01:38. > :01:39.before being suspended. That's because of mounting concerns about

:01:40. > :01:41.its parent company, Espirito Santo International, which has interests

:01:42. > :01:54.in various other financial companies. It failed to pay debts

:01:55. > :01:55.due this week and has been cited by regulators for accounting

:01:56. > :01:59.irregularities amid allegations it is covering up a huge black hole in

:02:00. > :02:01.its finances. Well, all this stirred up nasty memories of the Eurozone

:02:02. > :02:09.crisis, which started with the banking system. A big sell off in

:02:10. > :02:12.Europe stock markets spread to Wall Street ` borrowing costs for

:02:13. > :02:18.Portugal and its neighbours shot up and investors rushed to buy gold.

:02:19. > :02:27.Michelle Fleury was at the New York Stock Exchange.

:02:28. > :02:31.Portugal is a long way from Wall Street but the problem of solvency

:02:32. > :02:49.are affecting Banco Espirito Santo and they affected what happened here

:02:50. > :02:55.today. Roughly 1% was the tumbling level and traders regained some of

:02:56. > :03:04.their nerves throughout the day. The Dow was down 4/10 of a cent. It is a

:03:05. > :03:08.reminder that, at a time when we have been talking about record highs

:03:09. > :03:17.on the S 500 and the Dow Jones international, that the global

:03:18. > :03:20.economy remains vulnerable. So, is all the fuss overdone or is this the

:03:21. > :03:24.start of something more worrying? Michael Hewson is Senior Market

:03:25. > :03:29.Analyst at CMC Markets. I thought that Portugal was given a clean bill

:03:30. > :03:40.of health not long ago by international lenders but, the IMF

:03:41. > :03:52.and the EU are meant to find these problems so what went wrong ?

:03:53. > :03:59.Nothing went wrong, these problems were just never fixed. The

:04:00. > :04:05.preservation of the euro took the fear factor away but what he did not

:04:06. > :04:11.do is solve the underlying problems within the eurozone. High debt

:04:12. > :04:17.levels and low growth. A fractured banking system. We still have all of

:04:18. > :04:25.that and the IMF knew that. Article. They have no growth and

:04:26. > :04:34.high debt `` Portugal. Nothing has been resolved. Saying that, it is

:04:35. > :04:40.not necessarily a story about Portugal? It is not a contagion?

:04:41. > :04:46.There are two aspects to this story, the banking aspect and the

:04:47. > :04:50.fact that many of these banks have massive exposure to their

:04:51. > :05:01.governments in forms of sovereign debt which is essentially supporting

:05:02. > :05:04.fears of a low growth. Earlier this week, we got significant

:05:05. > :05:10.contractions in industrial production from Germany, Italy and

:05:11. > :05:17.Holland and there are concerns that the European economy will not grow.

:05:18. > :05:23.Debt levels in Portugal are insanely high and if they cannot grow, how

:05:24. > :05:27.will they repay their debt? It is not clear how this crisis came about

:05:28. > :05:34.but it refocuses investor attention on the fact that many of these banks

:05:35. > :05:43.have not made necessary changes. Does Portugal have enough money? It

:05:44. > :05:56.does. It has 6 billion euros (it's bailout but it refocuses attention

:05:57. > :06:07.on the riskiness of these ventures `` left from.

:06:08. > :06:10.From the stock market now to the racetrack where the smell of petrol

:06:11. > :06:13.and the roar of engines is all part of the atmosphere for motorsport

:06:14. > :06:16.fans. But later this year, they will be presented with a quieter, and

:06:17. > :06:18.it's claimed, greener alternative. The Formula E World Championship is

:06:19. > :06:21.designed to showcase the potential of electric cars and boost showroom

:06:22. > :06:24.sales. Our correspondent Theo Leggett went to Donington Park

:06:25. > :06:26.circuit in the North of England to take a look.

:06:27. > :06:29.The car that you are looking at might seem fairly ordinary but to

:06:30. > :06:31.leave me, it isn't. This is a Formula E and it runs entirely on

:06:32. > :06:34.batteries. It is an electric car and the people behind it think that it

:06:35. > :06:40.may transform the way we think about them altogether. The problem is

:06:41. > :06:44.clear. Electric vehicles don't sell very well. 82 million new cars were

:06:45. > :06:49.sold around the world last year and only 200,000 were battery`powered.

:06:50. > :06:54.These sleek racers are designed to change all of that. Our objective is

:06:55. > :06:58.to have more electric cars on the streets and we can achieve that by

:06:59. > :07:03.changing the perception which is very important. We are showing them

:07:04. > :07:08.racing all around the world and that will change the perception and

:07:09. > :07:14.improved technology. It is a potent machine, capable of 140 mph and for

:07:15. > :07:20.spectators and drivers, it will take getting used to. It is obviously

:07:21. > :07:25.very strange because I have been driving racing cars for a long time

:07:26. > :07:33.and I'm used to big rumbling engines and these are silent. You can feel a

:07:34. > :07:37.bit of buffering but there is no sound. New motor racing series often

:07:38. > :07:43.struggle to make an impact. Sponsors and their money tend to flock to

:07:44. > :07:51.Formula 1 but Formula E is hoping to build its own niche, targeting tech

:07:52. > :07:55.savvy youngsters. At least one Formula 1 legend thinks that it can

:07:56. > :08:01.succeed. I think it will have a loss of support here in Italy. It is

:08:02. > :08:08.something important and something you. I cannot say much more but I

:08:09. > :08:10.hope it will work. So, that is what the new Formula E car looks and

:08:11. > :08:15.sounds like and it certainly is different. But whether it can

:08:16. > :08:28.deliver the new generation of fans that organisers are promising, we

:08:29. > :08:31.will have to wait to find out. If you are a regular viewer you'll

:08:32. > :08:34.know that every Friday we've been looking for the next generation of

:08:35. > :08:37.billionaires, who they might be and how they might make their money.

:08:38. > :08:39.Today we head to Italy where, with 40% youth unemployment,

:08:40. > :08:42.opportunities for young people are scarce. But that hasn't stopped one

:08:43. > :08:49.student who's been described as Italy's Mark Zuckerberg. Duncan Hess

:08:50. > :08:52.reports. If men always and runs a company

:08:53. > :09:01.that turned over half $1 million last year. He is 22. In March 2012,

:09:02. > :09:06.I launched my company which is the first social network in Italy that

:09:07. > :09:12.matched companies with job seekers and I started it when I was 19 and

:09:13. > :09:19.in just over a year coming we have over 200,000 members only in Italy

:09:20. > :09:22.and 700 companies are involved. Then came the magazine headline that

:09:23. > :09:29.brought him to write less attention in Italy and around the world. At

:09:30. > :09:37.the beginning, it was not very easy because in Italy, we do not have a

:09:38. > :09:42.natural ecosystem with capital and so I started alone. My first

:09:43. > :09:47.business partner was my father. His business has attracted interest from

:09:48. > :09:50.some of the world's largest companies but the president of a

:09:51. > :09:57.global insurance giant was at first reluctant. TRANSLATION: I should say

:09:58. > :10:00.that I had doubts because new ways of doing things are not always easy

:10:01. > :10:06.to acquire especially in large companies like ours but it worked.

:10:07. > :10:09.He met the heads of our human resources who were interested in his

:10:10. > :10:17.proposal and we are about to sign a contract. Despite the success, he is

:10:18. > :10:23.continuing with his studies at University, one of the top is in the

:10:24. > :10:28.schools in Europe. Sometimes I would like to have a normal life of a

:10:29. > :10:33.university student, just again about exams or what to do on a Saturday

:10:34. > :10:44.night but I think that now, I am playing a game and it is a great

:10:45. > :10:53.opportunity. A quick look at the Asian markets. Don't forget you can

:10:54. > :11:09.get in touch with me and some of the team on Twitter. I'm @BBCAaron.

:11:10. > :11:12.Hundreds of thousands of people could be considered for weight loss

:11:13. > :11:15.surgery on the NHS in England as part of a plan to tackle Type`2

:11:16. > :11:18.diabetes. The National Institute of Health and Care Excellence, or NICE,

:11:19. > :11:20.says making more people eligible for a gastric band or bypass would

:11:21. > :11:22.reduce debilitating complications associated with the disease. Keith

:11:23. > :11:23.Doyle