:00:00. > :00:00.Those are the latest headlines from BBC World News.
:00:00. > :00:00.Now for the latest financial news with
:00:00. > :00:20.No return to 2008 - the US Treasury Secretary plays down
:00:21. > :00:29.But Jack Lew tells the BBC he's not taking anything for granted.
:00:30. > :00:32.After a week of turmoil, some calm returns to markets as the European
:00:33. > :00:53.We start with the turmoil on world markets because there are have been
:00:54. > :00:56.some calming words from arguably one of the most powerful players
:00:57. > :01:01.Gives me nine minutes and I will give you a fascinating and
:01:02. > :01:05.enlightening snapshot into the world of business!
:01:06. > :01:08.As United States Treasury Secretary, Jack Lew is in charge of steering
:01:09. > :01:19.He's been speaking to the BBC at the World Economic Forum
:01:20. > :01:23.in Davos, where he has been playing down fears that we could be facing
:01:24. > :01:37.Our business editor Kamal Ahmed started
:01:38. > :01:41.by asking him how optimistic he is about the global economy this year.
:01:42. > :01:49.Well, obviously there has been some downgrading of projections. The IMF
:01:50. > :01:54.projections have come down a bit. But the shape has not changed
:01:55. > :01:57.dramatically. Some of the mood has changed more dramatically than the
:01:58. > :02:03.projections. I think there has been a lot of focus on a few parts of the
:02:04. > :02:09.world like China, for example. How worried should we be about China? I
:02:10. > :02:12.look at China and the data that has come out and it does not look that
:02:13. > :02:17.different to what we were expecting as the reaction to it suggests is.
:02:18. > :02:23.China is in the middle of a long and challenging transitions, and
:02:24. > :02:27.industrial export oriented economy to a more consumer oriented economy.
:02:28. > :02:30.That is a difficult position. It should not be surprising that the
:02:31. > :02:34.rate of growth is coming down. The question is if they are pursuing the
:02:35. > :02:37.policies that will give them the ability to maintain a stable growth
:02:38. > :02:41.at a lower level for the next five years and the next ten years. They
:02:42. > :02:47.know the policies that they need to do in order to achieve that. The
:02:48. > :02:52.question now is as they get bumped around by market turmoil if they
:02:53. > :02:57.stick to those policies. I think it is really important that they
:02:58. > :03:00.don't. Despite the pessimism in the markets, you sound like an
:03:01. > :03:04.optimist. Do you think the global economy is on the right path? Or
:03:05. > :03:14.could there be another crisis ahead, which some are predicting? Another
:03:15. > :03:19.2008 moment. I'm cautiously optimistic. I think it is important
:03:20. > :03:32.not to let downside risks becoming self fulfilling prophecy is. -- a
:03:33. > :03:37.sulphur filling prophecy. -- self-fulfilling prophecy. There are
:03:38. > :03:43.different levels of capital and different tools in terms of
:03:44. > :03:47.transparency across the world now. I don't think we are in the same place
:03:48. > :03:51.and I don't think we are seeing those signs of weakness in our
:03:52. > :03:55.financial systems. Everyday I look to see that changed. I'm not taking
:03:56. > :04:00.anything for granted, that what was true yesterday is true tomorrow, but
:04:01. > :04:03.I'm also not someone who looks at our two hour developments in the
:04:04. > :04:10.markets and is as an indicator as to what is to come. -- developments
:04:11. > :04:13.hour to hour. It looks like
:04:14. > :04:17.after a tumultuous week a degree European and US shares ended higher
:04:18. > :04:21.and Asian stocks are gaining, too. We will bring you the numbers
:04:22. > :04:24.in just a moment. It all seems to be down to comments
:04:25. > :04:27.from the head of the European He gave a strong hint there could be
:04:28. > :04:31.more stimulus measures from the bank in the coming months
:04:32. > :04:34.because of the volatility on the markets, saying they may
:04:35. > :04:36.review their policy in March. Let's go straight to
:04:37. > :04:38.our correspondent Sharanjit Leyl in Singapore, who is watching
:04:39. > :04:44.the Asian markets for us. It is a better way to finish the
:04:45. > :04:51.week and how it started, right? That is it right. And did rebound in
:04:52. > :04:56.these Asian markets, reversing those massive declines in what was called
:04:57. > :05:01.Black Wednesday earlier this week. The Nikkei in Japan is up
:05:02. > :05:05.significantly. And it is all due to those comments from the European
:05:06. > :05:09.Central Bank chief, Mario Draghi, that the European Central Bank would
:05:10. > :05:13.consider more monetary stimulus. And these were echoed by the Japanese
:05:14. > :05:18.central bank. According to reports, they are also taking a serious look
:05:19. > :05:22.at further quantitative easing. That is because falling oil prices are
:05:23. > :05:27.making it even harder to reach its 2% inflation target. The Japanese
:05:28. > :05:31.central bank will meet next week. Some on the border to oppose further
:05:32. > :05:35.stimulus, with rates already close to zero alongside the massive asset
:05:36. > :05:41.buying programme. Elsewhere in Asia, markets are hired YouTube a
:05:42. > :05:47.resurgence in oil prices. -- are higher due to a resurgence. Hong
:05:48. > :05:55.Kong rebounded from its lowest since June, 2012. Chinese stocks continue
:05:56. > :05:58.to flounder. They are threatening to hit fresh two-year lows due to weak
:05:59. > :06:04.consumer sentiment there. Let's return to Davos now,
:06:05. > :06:07.where there's a chilly message for Low economic growth is
:06:08. > :06:09.the new normal, according to the boss of advertising
:06:10. > :06:12.giant WPP, Sir Martin Sorrell. China is now the company's third
:06:13. > :06:15.biggest market but the slowdown There's also the migration crisis,
:06:16. > :06:20.the risk of a UK exit from Europe and cyber security to name
:06:21. > :06:22.but a few. Sir Martin Sorrell is chief
:06:23. > :06:41.executive Is there anything you are not
:06:42. > :06:52.worried about? I want to start with this. There... There... Go on! There
:06:53. > :07:02.are a lot of risks. There are a lot of grey swans, as we call them. I
:07:03. > :07:09.don't know about black ones. Anyway, the big bosses, and I'm only a small
:07:10. > :07:16.one, they are ever watchful and I think they will go away from Davos
:07:17. > :07:19.being more watchful than when they came here. The atmosphere is
:07:20. > :07:23.gloomier than it was last year, although I do think the world
:07:24. > :07:27.economy will be very similar to last year this time, but no reason for
:07:28. > :07:35.any upside breakout, if you understand what I mean. I do. I want
:07:36. > :07:39.to ask about China. You were one of the earlier people to get into that
:07:40. > :07:46.market. It is your third biggest market. We all knew that a slowdown
:07:47. > :07:55.was coming. Has it been worse than you originally thought? Well,
:07:56. > :07:58.listen. Everything in life is cyclical. There is a long-term
:07:59. > :08:03.growth trends that benefits China and will benefit us, I have no
:08:04. > :08:06.doubt, and that applies to other markets like Brazil and indeed
:08:07. > :08:10.Russia, but on a very much longer-term. India is the one
:08:11. > :08:23.shining market of the so-called! Road that remained standing at the
:08:24. > :08:26.moment. -- the so-called BRICS but remained standing at the moment. It
:08:27. > :08:33.took America more than 100 years to become the global economic leader.
:08:34. > :08:36.And in the American presence, we went through the 1929 recession, so
:08:37. > :08:39.it cannot get much worse than that. You have to put it into a historical
:08:40. > :08:43.perspective and realise that in the long-term, the demographic shifts,
:08:44. > :08:48.the next billion consumers and our clients are all focused on will come
:08:49. > :08:51.from Asia, Latin America, Africa and the Middle East and Central and
:08:52. > :08:56.Eastern Europe, and you are seeing some changes. For example, Argentina
:08:57. > :09:02.is an important economy in the context of Latin America and it has
:09:03. > :09:05.a new president. He is here in Davos and he put on a really good
:09:06. > :09:11.presentation with his opposition number, I understand, and his
:09:12. > :09:15.government yesterday and he has made a remarkably good impression. Things
:09:16. > :09:20.are changing in some of the economies that we have been used to
:09:21. > :09:30.seeing as difficult. Just briefly, mate. The boss of the ECB says must
:09:31. > :09:35.enlist come in Europe. -- more stimulus will come in Europe. But
:09:36. > :09:42.the US Federal Reserve is now raising interest rates. Yes. And
:09:43. > :09:49.that is the problem. Japan is in the same position. And dollar strength
:09:50. > :09:53.in America. USC goes the report in dollars and who are suffering
:09:54. > :09:58.because of the translation of the profitability are cutting costs in
:09:59. > :10:03.order to make their absolute numbers. -- the chief executives who
:10:04. > :10:09.report. That puts another damper on the activities that we see. We think
:10:10. > :10:13.that is the wrong way to go. You have to invest in the brand to make
:10:14. > :10:17.the top mind go and that is where you get the total shareholder return
:10:18. > :10:21.and the share price increases and that is where you get the growth.
:10:22. > :10:26.But I'm afraid as you said, it is a new normal. I'm not been gloomy, I'm
:10:27. > :10:33.just saying that realistically, growth will be slow. Always a
:10:34. > :10:34.pleasure. Thank you, makes. Enjoy the skiing. That is what they
:10:35. > :10:40.normally do, apparently. Don't forget you can get
:10:41. > :10:43.in touch with me and some The NHS and the Department of Health
:10:44. > :10:58.in England is too slow to act in