:00:00. > :00:14.with Sally and World Business Report.
:00:15. > :00:21.US regulators reject VW's recall plan.
:00:22. > :00:23.Its new boss is meeting with the Environmental Protection
:00:24. > :00:29.We'll have the latest on the emissions cheating scandal.
:00:30. > :00:32.And what is the state of the worlds biggest economy?
:00:33. > :00:34.And what is the state of the world's biggest economy?
:00:35. > :00:37.President Obama says the US is the strongest and most durable
:00:38. > :00:44.But he calls for changes to reduce the growing income gap.
:00:45. > :00:52.Also in the programme, forget the doomsayers,
:00:53. > :00:59.bounce back in exports and the markets calm.
:01:00. > :01:03.Rico will tell you all you need to know.
:01:04. > :01:07.It's back to first gear for VW as US regulators have rejected it's recall
:01:08. > :01:09.plan for cars impacted by the emissions cheating scandal,
:01:10. > :01:15.saying the company's proposals are not adequate.
:01:16. > :01:18.Later today, the car giant's chief executive,
:01:19. > :01:19.Matthias Muller, will meet with the head
:01:20. > :01:21.of the Environmental Protection Agency.
:01:22. > :01:24.The scandal has severely damaged VW's reputation,
:01:25. > :01:26.and it's now desperately trying to rebuild trust
:01:27. > :01:37.Michelle Fleury reports from the Detroit auto show.
:01:38. > :01:44.While others showed off their wares, VW's new cars took a back seat as
:01:45. > :01:49.executives tried to put the diesel emissions scandal behind them. We
:01:50. > :01:53.want to make this right in the American way. We will continue
:01:54. > :01:58.everything in our power to make it right and to regain your trust,
:01:59. > :02:04.specifically of the American public. A comment from the W's CEO declaring
:02:05. > :02:08.we are not a criminal brand is unlikely to placate US officials who
:02:09. > :02:13.sued them saying they hadn't produced an acceptable way forward.
:02:14. > :02:17.A point the board chairman of the VW brand that test with us in
:02:18. > :02:22.Detroit's. I'm confident over the next couple of weeks we will come to
:02:23. > :02:27.an agreement over what we're going to do for our customers and to also
:02:28. > :02:32.make the cars legally compliant. Will it involved in some cases
:02:33. > :02:40.buying back cars? We will provide technical solutions for all the
:02:41. > :02:44.cars, we are confident we can solve all technical issues. And waiting
:02:45. > :02:49.for a fix. Brian Dickerson was appalled to learn his car was one of
:02:50. > :02:52.several hundred thousand currently on American roads with software
:02:53. > :02:59.installed on its diesel engine that allows it to flout antipollution
:03:00. > :03:03.laws. Anger and embarrassment because I had bragged to a lot of
:03:04. > :03:09.people about what a great car I had bought. Very fuel-efficient. You
:03:10. > :03:15.know, my car gets more miles to the gallon manuals. But also very clean.
:03:16. > :03:19.VW did not scale back its presence here in Detroit as it sought to earn
:03:20. > :03:24.back the trust of American consumers. A bigger hurdle could be
:03:25. > :03:26.making things right in the eyes of US officials, for whom an apology
:03:27. > :03:31.will not be enough. In his final State
:03:32. > :03:33.of the Union Address, President Obama has said that the US
:03:34. > :03:36.is the strongest and most durable But more progress is needed on equal
:03:37. > :03:52.pay, paid leave and We're in the middle of the longest
:03:53. > :04:07.streak of private-sector job creation in history. (APPLAUSE).
:04:08. > :04:14.More than 14 million new jobs, the strongest two years of job growth
:04:15. > :04:18.since the 1990s, an unemployment rate cut in half. Our auto industry
:04:19. > :04:34.just had its best year ever. That's just part of a manufacturing
:04:35. > :04:38.surge that's created 900,000 jobs in the past six years, and we've done
:04:39. > :04:45.all this by cutting our deficits by almost three quarters. You would
:04:46. > :04:55.expect him to present a good report. Obviously he's going to say what a
:04:56. > :04:59.good job he has done in terms of keeping the US economy on track.
:05:00. > :05:05.What are other people saying about his legacy? Yeah. I have to say,
:05:06. > :05:09.Sally, this was a very forceful and impassioned speech. It had a real
:05:10. > :05:15.optimistic tone because he was basically trying to lay out his
:05:16. > :05:17.legacy. As you can imagine, you had Democrats basically siding with the
:05:18. > :05:22.President and lauding this speech and then you had Republicans, who
:05:23. > :05:27.came out with the criticisms on the economy. As I said, he was trying to
:05:28. > :05:32.lay out his legacy, so the economy played a big part in that. He laid
:05:33. > :05:35.out some of the progress we had seen, the US economy getting
:05:36. > :05:40.stronger since he inherited the financial crisis. But he also made
:05:41. > :05:44.some concessions, and that was important. He hit hard on
:05:45. > :05:48.Republicans, saying anyone who claims the economy is in decline is
:05:49. > :05:52.peddling fiction. And he said why Americans are feeling anxious is
:05:53. > :05:56.because the economy has been changing in profound ways and he
:05:57. > :06:02.said those started before the great recession. He tried to strike an
:06:03. > :06:05.optimistic tone, saying the way America was going to come out of
:06:06. > :06:10.this stronger was to embrace change. He did say things needed to be done,
:06:11. > :06:14.like equal pay for equal work, paid leave, raising the minimum wage, and
:06:15. > :06:19.income inequality was still a big issue. One of the more poignant
:06:20. > :06:23.sound bites was when he said food stamp recipients didn't cause the
:06:24. > :06:27.financial crisis, recklessness on Wall Street did. Immigrants aren't
:06:28. > :06:32.the reason... Boardroom decisions make quarterly earnings over
:06:33. > :06:40.long-term returns. We have statements he has made to the
:06:41. > :06:47.public. Thank you so much. A quick response in terms of that speech.
:06:48. > :06:48.More online. Let's go from the world's biggest economy to the
:06:49. > :06:50.world's second-biggest. Chinese exports defied
:06:51. > :06:59.expectations in December, rising 2.3% from a year ago
:07:00. > :07:02.in yuan denominated terms and economists say it is a weaker
:07:03. > :07:05.currency that has helped fuel demand Rico, is this a blip
:07:06. > :07:24.or a sign of things to come? Well, Sally, for now this is a rare
:07:25. > :07:30.bright spot for the economy and it has calmed investors' nerves. As for
:07:31. > :07:34.sustainability, it remains to be seen if this will continue in the
:07:35. > :07:40.month of January and in the first quarter of 2016. China's authorities
:07:41. > :07:45.lowering the value of the currency in recent weeks and months, making
:07:46. > :07:50.exports more competitive on global markets. Analysts say the
:07:51. > :07:55.depreciation of the currency, 5% since August, has helped with
:07:56. > :07:59.exports. Overseas demand also strengthening with increasing new
:08:00. > :08:04.export orders, but it is still uncertain whether the recovery is
:08:05. > :08:08.sustainable. Imports fell 4%, an improvement on the decline in
:08:09. > :08:15.November. The December trade surplus jumping almost 25%. Better than
:08:16. > :08:19.expected numbers calming sceptical investors and stabilising the
:08:20. > :08:24.Shanghai and Shenzhen stock markets this Wednesday. The bigger test is
:08:25. > :08:28.when the fourth-quarter data and annual growth is released next week,
:08:29. > :08:33.and that is when we will find out the kind of growth we are seeing in
:08:34. > :08:39.China in 2015 and whether or not we are seeing its slowest growth in 25
:08:40. > :08:46.years. Sally. We have a week to prepare for that. Thanks for that.
:08:47. > :08:48.Rico, good to see you. Oil is trading just above $34 a barrel at
:08:49. > :08:51.12 year lows. On Tuesday Brent crude
:08:52. > :08:53.fell as low as $30.34, while the US benchmark,
:08:54. > :08:56.West Texas Intermediate briefly fell below $30 a barrel
:08:57. > :08:57.before recovering. Prices have fallen sharply
:08:58. > :08:59.in volatile trading over the past week as oversupply persists
:09:00. > :09:04.amid weak global demand. UK oil firm BP has announced
:09:05. > :09:07.it is cutting 4,000 jobs It comes as profits continue
:09:08. > :09:11.to suffer as a result BP said all the job losses
:09:12. > :09:15.would occur in its oil exploration Meanwhile, Brazil's oil giant,
:09:16. > :09:25.Petrobras, has announced a massive scale back of its investment plans
:09:26. > :09:32.thanks to the lower commodity price. Petrobas will reduce
:09:33. > :09:33.investment by $32 billion, that's 25% over
:09:34. > :09:47.the next four years. That's a very significant sum.
:09:48. > :09:54.Today, oil prices going up. Let's look at the markets in general.
:09:55. > :09:58.Brent crude up just 5.6% -- 0.6%. Japan and Hong Kong trading much
:09:59. > :10:02.higher. The night before was a strong rally on Wall Street as well.
:10:03. > :10:07.Basically markets in Asia are coming off a three-year low off a very
:10:08. > :10:19.torrid start to the year. I'll see you soon.
:10:20. > :10:21.A 24-hour strike by junior doctors in England will end at 8am
:10:22. > :10:24.Despite the cancellation of thousands of operations
:10:25. > :10:26.and appointments, NHS England said hospitals were coping well
:10:27. > :10:28.and patients were not being put at risk.
:10:29. > :10:31.But another stoppage is planned in two weeks' time and attempts
:10:32. > :10:34.are being made to prevent the action.