22/01/2016 World Business Report

Those are the latest headlines from BBC World News.

Now for the latest financial news with

No return to 2008 - the US Treasury Secretary plays down

But Jack Lew tells the BBC he's not taking anything for granted.

After a week of turmoil, some calm returns to markets as the European

We start with the turmoil on world markets because there are have been

some calming words from arguably one of the most powerful players

Gives me nine minutes and I will give you a fascinating and

enlightening snapshot into the world of business!

As United States Treasury Secretary, Jack Lew is in charge of steering

He's been speaking to the BBC at the World Economic Forum

in Davos, where he has been playing down fears that we could be facing

Our business editor Kamal Ahmed started

by asking him how optimistic he is about the global economy this year.

Well, obviously there has been some downgrading of projections. The IMF

projections have come down a bit. But the shape has not changed

dramatically. Some of the mood has changed more dramatically than the

projections. I think there has been a lot of focus on a few parts of the

world like China, for example. How worried should we be about China? I

look at China and the data that has come out and it does not look that

different to what we were expecting as the reaction to it suggests is.

China is in the middle of a long and challenging transitions, and

industrial export oriented economy to a more consumer oriented economy.

That is a difficult position. It should not be surprising that the

rate of growth is coming down. The question is if they are pursuing the

policies that will give them the ability to maintain a stable growth

at a lower level for the next five years and the next ten years. They

know the policies that they need to do in order to achieve that. The

question now is as they get bumped around by market turmoil if they

stick to those policies. I think it is really important that they

don't. Despite the pessimism in the markets, you sound like an

optimist. Do you think the global economy is on the right path? Or

could there be another crisis ahead, which some are predicting? Another

2008 moment. I'm cautiously optimistic. I think it is important

not to let downside risks becoming self fulfilling prophecy is. -- a

sulphur filling prophecy. -- self-fulfilling prophecy. There are

different levels of capital and different tools in terms of

transparency across the world now. I don't think we are in the same place

and I don't think we are seeing those signs of weakness in our

financial systems. Everyday I look to see that changed. I'm not taking

anything for granted, that what was true yesterday is true tomorrow, but

I'm also not someone who looks at our two hour developments in the

markets and is as an indicator as to what is to come. -- developments

hour to hour. It looks like

after a tumultuous week a degree European and US shares ended higher

and Asian stocks are gaining, too. We will bring you the numbers

in just a moment. It all seems to be down to comments

from the head of the European He gave a strong hint there could be

more stimulus measures from the bank in the coming months

because of the volatility on the markets, saying they may

review their policy in March. Let's go straight to

our correspondent Sharanjit Leyl in Singapore, who is watching

the Asian markets for us. It is a better way to finish the

week and how it started, right? That is it right. And did rebound in

these Asian markets, reversing those massive declines in what was called

Black Wednesday earlier this week. The Nikkei in Japan is up

significantly. And it is all due to those comments from the European

Central Bank chief, Mario Draghi, that the European Central Bank would

consider more monetary stimulus. And these were echoed by the Japanese

central bank. According to reports, they are also taking a serious look

at further quantitative easing. That is because falling oil prices are

making it even harder to reach its 2% inflation target. The Japanese

central bank will meet next week. Some on the border to oppose further

stimulus, with rates already close to zero alongside the massive asset

buying programme. Elsewhere in Asia, markets are hired YouTube a

resurgence in oil prices. -- are higher due to a resurgence. Hong

Kong rebounded from its lowest since June, 2012. Chinese stocks continue

to flounder. They are threatening to hit fresh two-year lows due to weak

consumer sentiment there. Let's return to Davos now,

where there's a chilly message for Low economic growth is

the new normal, according to the boss of advertising

giant WPP, Sir Martin Sorrell. China is now the company's third

biggest market but the slowdown There's also the migration crisis,

the risk of a UK exit from Europe and cyber security to name

but a few. Sir Martin Sorrell is chief

executive Is there anything you are not

worried about? I want to start with this. There... There... Go on! There

are a lot of risks. There are a lot of grey swans, as we call them. I

don't know about black ones. Anyway, the big bosses, and I'm only a small

one, they are ever watchful and I think they will go away from Davos

being more watchful than when they came here. The atmosphere is

gloomier than it was last year, although I do think the world

economy will be very similar to last year this time, but no reason for

any upside breakout, if you understand what I mean. I do. I want

to ask about China. You were one of the earlier people to get into that

market. It is your third biggest market. We all knew that a slowdown

was coming. Has it been worse than you originally thought? Well,

listen. Everything in life is cyclical. There is a long-term

growth trends that benefits China and will benefit us, I have no

doubt, and that applies to other markets like Brazil and indeed

Russia, but on a very much longer-term. India is the one

shining market of the so-called! Road that remained standing at the

moment. -- the so-called BRICS but remained standing at the moment. It

took America more than 100 years to become the global economic leader.

And in the American presence, we went through the 1929 recession, so

it cannot get much worse than that. You have to put it into a historical

perspective and realise that in the long-term, the demographic shifts,

the next billion consumers and our clients are all focused on will come

from Asia, Latin America, Africa and the Middle East and Central and

Eastern Europe, and you are seeing some changes. For example, Argentina

is an important economy in the context of Latin America and it has

a new president. He is here in Davos and he put on a really good

presentation with his opposition number, I understand, and his

government yesterday and he has made a remarkably good impression. Things

are changing in some of the economies that we have been used to

seeing as difficult. Just briefly, mate. The boss of the ECB says must

enlist come in Europe. -- more stimulus will come in Europe. But

the US Federal Reserve is now raising interest rates. Yes. And

that is the problem. Japan is in the same position. And dollar strength

in America. USC goes the report in dollars and who are suffering

because of the translation of the profitability are cutting costs in

order to make their absolute numbers. -- the chief executives who

report. That puts another damper on the activities that we see. We think

that is the wrong way to go. You have to invest in the brand to make

the top mind go and that is where you get the total shareholder return

and the share price increases and that is where you get the growth.

But I'm afraid as you said, it is a new normal. I'm not been gloomy, I'm

just saying that realistically, growth will be slow. Always a

pleasure. Thank you, makes. Enjoy the skiing. That is what they

normally do, apparently. Don't forget you can get

in touch with me and some The NHS and the Department of Health

in England is too slow to act in