:00:00. > :00:00.and other rare diseases. They are the very latest headlines
:00:00. > :00:07.here on BBC News. Now, though, it's time for all the latest business
:00:08. > :00:20.news with Alastair Baxter and World Business Report.
:00:21. > :00:29.Markets slump as global worries mount. The Dow wipes out all of its
:00:30. > :00:33.gains for this year. And investors now await US employment numbers.
:00:34. > :00:44.Will they stop the slide or spark more selling? A warm welcome to you.
:00:45. > :00:48.In just a moment, the struggles of Europe's airlines, and the latest in
:00:49. > :00:55.our series on 21st`century jobs. First this hour, we start with worry
:00:56. > :00:59.faces on the floor of the New York Stock Exchange on Thursday. Was it a
:01:00. > :01:07.temporary setback or the start of a major correction on the market?
:01:08. > :01:12.That's the question many are asking as global stocks had their worst day
:01:13. > :01:15.in almost six months. A sell`off in Europe's spread to Wall Street,
:01:16. > :01:22.which saw the Dow Jones plunged more than 317 points, at one point 1.9%,
:01:23. > :01:28.to close at this amount. It means it's wiped out all of its gains for
:01:29. > :01:41.the year. The FTSE 500 also fell more than 39%, or 39 points, rather,
:01:42. > :01:46.to end at this amount. Still higher than it was at the beginning of the
:01:47. > :01:51.year. Surged to record highs has led to warnings shares may be overvalued
:01:52. > :01:56.and you are correction, so what's causing this current bout of nerves?
:01:57. > :02:04.The answer, not one single think about a perfect storm of worries
:02:05. > :02:08.from all around the world. Invest in nerves were clearly
:02:09. > :02:14.frazzled on Thursday. Why? There are a host of reasons, starting with the
:02:15. > :02:17.situation in Ukraine. We heard from companies like BP talk about the
:02:18. > :02:20.impact it's starting to have on their business, and of course
:02:21. > :02:24.there's also that default in Argentina. Closer to home, here in
:02:25. > :02:29.the United States on Thursday there was a report on wage inflation. That
:02:30. > :02:33.raised the prospect that perhaps America's Central bank would shift
:02:34. > :02:36.its focus from battling the weak labour market to fighting inflation,
:02:37. > :02:43.and that could mean higher interest rates. Now, as former central banker
:02:44. > :02:47.Alan Greenspan noted, the stock market here has been rising for some
:02:48. > :02:54.time, and perhaps it was due for a significant correction, and
:02:55. > :03:00.investors will be worrying whether that has now begun.
:03:01. > :03:04.Things have calmed a little in Asia. Let's go to Rico Hizon, monitoring
:03:05. > :03:08.the market in our Singapore bureau. What has the reaction been like in
:03:09. > :03:12.Asia? Well, it's been quite positive,
:03:13. > :03:20.despite some of the losses. New data from China has stabilised nervous
:03:21. > :03:23.regional markets. Asian shares with some of the losses as the
:03:24. > :03:28.surprisingly strong pickup in Chinese manufacturing helped take
:03:29. > :03:33.some of the sting out of the slump on Wall Street. The purchasing
:03:34. > :03:38.managers index added to evidence that Beijing's stimulus initiatives
:03:39. > :03:42.were indeed gaining traction. It was at the 27 month high. Let's look at
:03:43. > :03:47.Japan. The new cake is recouping some of its earlier losses to be
:03:48. > :03:52.down about zero point 1%. Hong Kong is down about 0.5%. But the china
:03:53. > :03:58.and changing markets have recovered all the losses as the indices have
:03:59. > :04:02.crossed over into positive territory. Despite issues outside of
:04:03. > :04:06.the region, China's economy, read gaining momentum after targeting
:04:07. > :04:09.government stimulus initiatives is indeed good news for the regional
:04:10. > :04:16.economies. For now, many thanks. Rico Hizon in
:04:17. > :04:19.Singapore. What happens next on the markets could well be determined by
:04:20. > :04:24.the latest employment figures from the US. A strong showing could
:04:25. > :04:29.convince investors that the Federal reserve will raise interest rates
:04:30. > :04:34.sooner and more aggressively. Let's look at what we are expecting. US
:04:35. > :04:40.employers are expected to have created some 233,000 jobs in July,
:04:41. > :04:46.according to a Reuters survey. That would leave the jobless rate at a
:04:47. > :04:52.six`year low of 6.1%. It would also mean six months in a row of job
:04:53. > :04:57.creation above 200,000 ` that's the best run we've seen since 1997.
:04:58. > :05:03.Staying with the world of employment now, because all of this week we've
:05:04. > :05:07.been looking at the so`called millennials, young people born since
:05:08. > :05:12.1980 taking an innovative approach to finding work. We have been
:05:13. > :05:18.meeting some of New York's 21st`century Artisans.
:05:19. > :05:22.So, this is the kitchen, the main centre of operations for a little
:05:23. > :05:29.bit. Before even walking into this sweet shop's kitchen, the exquisite
:05:30. > :05:36.smell of chocolate and Karen L just overwhelms the senses. Molasses and
:05:37. > :05:39.barter. Chocolate dipped Karen Elson are hardly new. The difference is,
:05:40. > :05:44.all these delectable delights are made by hand. I think the movement
:05:45. > :05:47.towards handmade versus factory made has a lot to do with people
:05:48. > :05:50.recognising the difference between something that's been touched I
:05:51. > :05:57.human hands and something that's spent its whole life going through
:05:58. > :06:01.stainless steel conveyor belts. They make their suites in one of the
:06:02. > :06:08.buildings just behind me. This area is wall`to`wall warehouses. Many of
:06:09. > :06:11.the spaces are being occupied by millennials ` that is, young people
:06:12. > :06:18.that are building businesses based on selling something that's
:06:19. > :06:23.handmade. And its reimagining the face of manufacturing in New York.
:06:24. > :06:27.We thought manufacturing went away, the jobs left New York City and
:06:28. > :06:30.either went overseas or relocated to more suburban areas, but in reality
:06:31. > :06:34.manufacturing has simply changed, and what you see behind closed doors
:06:35. > :06:40.in factory buildings like the one behind us now is dozens, scores,
:06:41. > :06:48.hundreds of new manufacturing businesses. But before these new
:06:49. > :06:55.businesses set up in industrial spaces, many of them start out like
:06:56. > :06:58.Domine, who makes soap out of her Queens apartment. There is high in
:06:59. > :07:02.employment and businesses are always being moved abroad, so, if you are
:07:03. > :07:06.buying things that are made sustainably, eco` consciously, and
:07:07. > :07:12.made by a small business that operates in the US, you feel like
:07:13. > :07:16.you are helping, maybe not solve the problem is, but making little
:07:17. > :07:21.decisions that are making steps in the right direction. Dominique's
:07:22. > :07:25.business was born from a desire to find skincare products suited to
:07:26. > :07:33.have sensitive skin. It's now turned into a fresh start in manufacturing.
:07:34. > :07:38.Let's head to the aviation world now, because international airlines
:07:39. > :07:43.group, the parent company of British Airways and Iberia, reports results
:07:44. > :07:47.in just over an hour's time. Archrivals lives fans are and Air
:07:48. > :07:52.France have warned on profits because of the weak state of the
:07:53. > :07:59.European economy. Let's talk to Douglas McNeill, an investment
:08:00. > :08:04.director at stockbrokers. Thanks for coming in to talk to us. What sort
:08:05. > :08:12.of results are we expecting out of this? Not great. Last year the
:08:13. > :08:16.company made a profit of just over half 1 billion euros. They are on
:08:17. > :08:19.course to exceed that this year, and in particular to return Iberia to
:08:20. > :08:25.profitability, or at least break even, since it merged with British
:08:26. > :08:29.Airways back in 2011. It has lost nearly 1 billion euros in total so
:08:30. > :08:32.if they could restore that the black that would be a significant
:08:33. > :08:37.achievement, but some results from other airlines haven't been great.
:08:38. > :08:42.Let's talk about them, and also look at British airlines, another airline
:08:43. > :08:46.owned by IAG. How has that fair? It seems to be doing pretty well as far
:08:47. > :08:50.as we can tell. It hasn't said anything to the country despite
:08:51. > :08:54.warnings by air France and Lufthansa. Its great strength is its
:08:55. > :09:02.transatlantic franchise, which is a big market for their enemies to
:09:03. > :09:06.attack. The others are far more exposed to Asia than British
:09:07. > :09:12.airways, and those markets for which the Gulf carriers are pretty
:09:13. > :09:17.competitive. As I intimated, with what is happening with Russia and
:09:18. > :09:22.Ukraine, it's looking a bit neuter the moment. Interestingly, I've just
:09:23. > :09:26.seen that air France and Lufthansa, looking to introduce some sort of
:09:27. > :09:31.budget airline to compete with the likes of easyJet. They both have
:09:32. > :09:36.budget units, looking to bowl close up to move more into that business.
:09:37. > :09:41.But it's a difficult thing to do. It's one thing to set up a budget
:09:42. > :09:45.airline from scratch without entrenched working practices, union
:09:46. > :09:48.restrictions, and with very new planes. That's a crucial part of the
:09:49. > :09:52.formula. If you are trying to play catch up, much more difficult.
:09:53. > :09:58.Challenging times ahead. Thanks for coming in to talk to us. Let's move
:09:59. > :10:03.onto some other news now because the World Trade Organisation has failed
:10:04. > :10:07.to reach a deal to standardise customs rules which supporters claim
:10:08. > :10:12.could add $1 trillion and 21 million jobs to the world economy. It would
:10:13. > :10:17.have been the first global trade reform in two decades but was
:10:18. > :10:20.blocked by India 's demands for concessions on agricultural
:10:21. > :10:24.subsidies and stockpiling. Argentina's main stop market slumped
:10:25. > :10:29.8.4% on news the country has been pushed into second default in 13
:10:30. > :10:33.years. The peso fell sharply against the US dollar. Argentina failed to
:10:34. > :10:37.strike a deal with a group of creditors ahead of the midnight
:10:38. > :10:41.deadline on Wednesday. The investors are pursuing payments in full the
:10:42. > :10:47.$1.3 billion of debt they bought at a steep discount. From all of us
:10:48. > :10:57.here on World Business Report, that's it for now. Stay with us.
:10:58. > :11:04.England's coastline has been battered all this year with flooding
:11:05. > :11:10.that's being causing millions of pounds worth of damage. Ten coastal
:11:11. > :11:11.towns will receive new funding to create nearly 1400 jobs and