11/07/2014 World Business Report


11/07/2014

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BBC World News. Now for the latest financial news with Aaron Heslehurst

:00:00.3:59:59

in World Business Report. The Eurozone's ghosts return. Global

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markets rattled by fears of a new banking crisis in Portugal. Plus,

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Formula one without the fumes and the noise. Yes, move over petrol

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heads. We take a look at Formula E. Welcome to World Business Report.

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I'm Aaron Heslehurst. We're going to meet the students they call the Mark

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Zuckerberg of Italy as the latest in our series on the next generation of

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millionaires coming but first... We start with Portugal because global

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markets have been rattled by fears the country could be facing new

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financial difficulties. Portugal, along with Greece and Ireland, was

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of course at the epicentre of the European debt crisis. It got a 100

:01:13.:01:15.

billion dollar rescue from the EU and IMF and exited the bailout less

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than two months ago with a clean bill of health. Problems over? Maybe

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not. The worries centre around this: Banco Espirito Santo, the biggest

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bank on Portugal's stock market. Its shares plunged 19% on Thursday

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before being suspended. That's because of mounting concerns about

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its parent company, Espirito Santo International, which has interests

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in various other financial companies. It failed to pay debts

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due this week and has been cited by regulators for accounting

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irregularities amid allegations it is covering up a huge black hole in

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its finances. Well, all this stirred up nasty memories of the Eurozone

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crisis, which started with the banking system. A big sell off in

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Europe stock markets spread to Wall Street ` borrowing costs for

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Portugal and its neighbours shot up and investors rushed to buy gold.

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Michelle Fleury was at the New York Stock Exchange.

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Portugal is a long way from Wall Street but the problem of solvency

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are affecting Banco Espirito Santo and they affected what happened here

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today. Roughly 1% was the tumbling level and traders regained some of

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their nerves throughout the day. The Dow was down 4/10 of a cent. It is a

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reminder that, at a time when we have been talking about record highs

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on the S 500 and the Dow Jones international, that the global

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economy remains vulnerable. So, is all the fuss overdone or is this the

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start of something more worrying? Michael Hewson is Senior Market

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Analyst at CMC Markets. I thought that Portugal was given a clean bill

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of health not long ago by international lenders but, the IMF

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and the EU are meant to find these problems so what went wrong ?

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Nothing went wrong, these problems were just never fixed. The

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preservation of the euro took the fear factor away but what he did not

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do is solve the underlying problems within the eurozone. High debt

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levels and low growth. A fractured banking system. We still have all of

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that and the IMF knew that. Article. They have no growth and

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high debt `` Portugal. Nothing has been resolved. Saying that, it is

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not necessarily a story about Portugal? It is not a contagion?

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There are two aspects to this story, the banking aspect and the

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fact that many of these banks have massive exposure to their

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governments in forms of sovereign debt which is essentially supporting

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fears of a low growth. Earlier this week, we got significant

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contractions in industrial production from Germany, Italy and

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Holland and there are concerns that the European economy will not grow.

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Debt levels in Portugal are insanely high and if they cannot grow, how

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will they repay their debt? It is not clear how this crisis came about

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but it refocuses investor attention on the fact that many of these banks

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have not made necessary changes. Does Portugal have enough money? It

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does. It has 6 billion euros (it's bailout but it refocuses attention

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on the riskiness of these ventures `` left from.

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From the stock market now to the racetrack where the smell of petrol

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and the roar of engines is all part of the atmosphere for motorsport

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fans. But later this year, they will be presented with a quieter, and

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it's claimed, greener alternative. The Formula E World Championship is

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designed to showcase the potential of electric cars and boost showroom

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sales. Our correspondent Theo Leggett went to Donington Park

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circuit in the North of England to take a look.

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The car that you are looking at might seem fairly ordinary but to

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leave me, it isn't. This is a Formula E and it runs entirely on

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batteries. It is an electric car and the people behind it think that it

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may transform the way we think about them altogether. The problem is

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clear. Electric vehicles don't sell very well. 82 million new cars were

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sold around the world last year and only 200,000 were battery`powered.

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These sleek racers are designed to change all of that. Our objective is

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to have more electric cars on the streets and we can achieve that by

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changing the perception which is very important. We are showing them

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racing all around the world and that will change the perception and

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improved technology. It is a potent machine, capable of 140 mph and for

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spectators and drivers, it will take getting used to. It is obviously

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very strange because I have been driving racing cars for a long time

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and I'm used to big rumbling engines and these are silent. You can feel a

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bit of buffering but there is no sound. New motor racing series often

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struggle to make an impact. Sponsors and their money tend to flock to

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Formula 1 but Formula E is hoping to build its own niche, targeting tech

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savvy youngsters. At least one Formula 1 legend thinks that it can

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succeed. I think it will have a loss of support here in Italy. It is

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something important and something you. I cannot say much more but I

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hope it will work. So, that is what the new Formula E car looks and

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sounds like and it certainly is different. But whether it can

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deliver the new generation of fans that organisers are promising, we

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will have to wait to find out. If you are a regular viewer you'll

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know that every Friday we've been looking for the next generation of

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billionaires, who they might be and how they might make their money.

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Today we head to Italy where, with 40% youth unemployment,

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opportunities for young people are scarce. But that hasn't stopped one

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student who's been described as Italy's Mark Zuckerberg. Duncan Hess

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reports. If men always and runs a company

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that turned over half $1 million last year. He is 22. In March 2012,

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I launched my company which is the first social network in Italy that

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matched companies with job seekers and I started it when I was 19 and

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in just over a year coming we have over 200,000 members only in Italy

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and 700 companies are involved. Then came the magazine headline that

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brought him to write less attention in Italy and around the world. At

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the beginning, it was not very easy because in Italy, we do not have a

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natural ecosystem with capital and so I started alone. My first

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business partner was my father. His business has attracted interest from

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some of the world's largest companies but the president of a

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global insurance giant was at first reluctant. TRANSLATION: I should say

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that I had doubts because new ways of doing things are not always easy

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to acquire especially in large companies like ours but it worked.

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He met the heads of our human resources who were interested in his

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

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continuing with his studies at University, one of the top is in the

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schools in Europe. Sometimes I would like to have a normal life of a

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university student, just again about exams or what to do on a Saturday

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night but I think that now, I am playing a game and it is a great

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opportunity. A quick look at the Asian markets. Don't forget you can

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get in touch with me and some of the team on Twitter. I'm @BBCAaron.

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Hundreds of thousands of people could be considered for weight loss

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surgery on the NHS in England as part of a plan to tackle Type`2

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diabetes. The National Institute of Health and Care Excellence, or NICE,

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says making more people eligible for a gastric band or bypass would

:11:19.:11:20.

reduce debilitating complications associated with the disease. Keith

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Doyle

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