29/07/2014 World Business Report

You are watching the PC world news. Apologies for the technical problems

we are having. I will hand you over to Sally Bundock.

Talking tough, President Obama and European Union leaders agree to

adopt broader sanctions against Russia, but will Mr Putin blink? And

Japan sees an improving economic picture, with a stronger labour

market and households willing to spend a bit more Welcome to World

Business Report. I'm Sally Bundock. Also in the programme, we have part

two in our series about how new tech has enabled the young to create jobs

that never before existed. President Obama and European Union leaders

have agreed to impose further sanctions on Russia because they say

they have seen no evidence that President Putin is preparing to

change policy on eastern Ukraine. Full details are to be finalised at

a meeting of European Union officials on Tuesday. So what areas

are expected to be targeted? Financial, defence and energy

sectors are among those likely, as well as banning European investors

from buying new debt or shares of banks owned 50% or more by the

state. And an embargo on arms sales to Moscow and restrictions on the

supply of energy and dual`use technologies is also on the table,

but it looks as though restrictions to supplying technology to Russia

will include oil but exclude the gas sector. Here's what Tony Blinken the

national Security Adviser to President Obama had to say

yesterday. The European leaders clearly shared

the assessment of the determination to act. We expect the European Union

to take additional steps this week, including at key sectors of the

Russian economy. In conjunction with Europe, the United States will

implement measures. It is not to punish Russia, but it is because of

the situation in Ukraine. How tough will these sanctions be? They will

be tougher than the sanctions we have seen to date. There have been

sanctions on friends close to President Putin. We are now seeing

more sanctions coming from the EU. These are

tier three sanctions. It may involve supply to the energy sector. What

impact will this have on Russia? It could be quite damaging, especially

financially. They are banning Russia from recent capital on European

markets. That will be damaging to Russian businesses, especially those

that are state owned, with 50% more of speech shares. There is evidence

over the last few months that the initial impact of the sanctions was

tough. Consumer sentiment fell. We have seen that comes back recently.

The new sanctions could prove more long`lasting. Would it change the

actions of President Putin? We will have to wait to see what the

financial sanctions do. There is talk about credit availability of

companies and the interest costs they pay. That will be one

indication of how much it is hurting Russia. Where it will really hurt us

in the oil and gas sector. That is something that Europe has been

tentative in doing. There is talk about seizing assets held by Shell

and BP. That is certainly the area that will hurt Russia. There is an

option for them to retaliate. They haven't shown any signs of wanting

to retaliate. They have taken them on the nose and ignore them so far.

`` ignored. As we get confirmation on those sanctions, we will update

you. Members of the Millennial generation who've come onto the job

market since the crisis of 2008 have had well`publicised problems finding

work. Careers that sustained many previous generations, who became

lawyers or doctors, for example, are often no longer an option. But some

young people are finding ways to earn a living from skills they

learned not at school, but from chatting with their friends on

social media. Samira Hussain reports from New York on the opportunities

opened up by technology that didn't even exist a few years ago. Wearing

casual clothes, strolling through New York's Park, snapping photos on

his phone, and then it may look like he is on vacation, but he is

actually working. It is unique. This job didn't exist two years ago. They

are stunned that I can make a living taking pictures with a cellphone. I

am stunned to. He makes a running marketing campaigns on

Instagram. He has been hired by a large American brands, including

Delta. He is taking photos for a client today. Once he makes a few

changes, it is ready to go. Snapchat, Vine, Tumbler, These sites

all depend on people following you. Your status increases the more

friends you have. It is a goldmine for brands. If they want to increase

their visibility with Millenials, to technology they must go. This is

where young people are spending their time and communicating.

Understanding that that is where this generation is and where they

are spending their time, I understand that. I drop using these

apps. I love them. It is important to embrace them for what they are.

She made a name for herself as the Picasso of Snapchat. It has a fun

doodle aspect. She doesn't know anyone else who does what she does.

At least not yet. Job availability in Japan hit its highest in 22 years

in June as companies grow more confident about hiring, and

household spending rebounded modestly. But it's not all good news

for Prime Minister Shinzo Abe at home. First to Sharon. There is a

lot of information coming out about the health of the Japanese economy.

Tell us more. You talk about jobs, but there is other data. It is all

due to the sales tax hike in April. That is denting consumer demand,

although not as much as previously feared. The fear was that consumer

demand would plunge in the wake of the April one that the hike and hit

producers. We know that spending did fall after the tax rise. Official

data says household spending is down 3% on the year end June. That is a

much smaller decrease than the 8% drop in May. Retail sales are also

down .6% in June, declining for the third straight month. That is a sign

of a pullback in demand after the tax rise still remains a drag on

consumer spending, but not quite so much. The government raised that

sales tax to 8% from 5% on April one. That was an attempt to try to

fix Japan's finances. Schindler `` Shinzo Abe is suffering the

polls. He has been introducing measures to try to inflate Japan's

economy, including in the rural sector. The Federal Reserve starts

its two`day meeting today. There is a loss of news on the United States

economy coming out. It is a packed agenda. We now look to the papers.

Thank