:00:07. > :00:07.Those are the latest headlines from BBC News.
:00:08. > :00:10.Now for the latest financial news with Aaron Heslehurst and
:00:11. > :00:19.Global shares enter a bear market: Banks get another
:00:20. > :00:22.mauling as worries grow about the health of the financial system.
:00:23. > :00:24.Plus, Gates, Jobs, Zuckerberg: When college dropouts can make billions,
:00:25. > :00:28.We take a look at the decline in business education.
:00:29. > :00:56.We'll have the latest from the Asian markets in a moment, but first:
:00:57. > :00:59.We start with the turmoil on global financial markets because US shares
:01:00. > :01:02.have fallen for the fourth day in a row after more heavy losses in
:01:03. > :01:06.Europe. Markets in China are still closed for the Lunar New Year but
:01:07. > :01:11.Markets in China are still closed for the Lunar New Year but elsewhere
:01:12. > :01:25.We'll bring you those numbers in a moment.
:01:26. > :01:28.As of last night, global shares have now reached a grizzly milestone.
:01:29. > :01:32.That's what investors call a 20% fall from the peak
:01:33. > :01:36.and that is what the index of top global shares, known as the
:01:37. > :01:40.It signals a major loss of investor confidence and often
:01:41. > :01:52.We know about the worries about China, and the global economy,
:01:53. > :01:54.and oil prices, but there's a more specific concern emerging too.
:01:55. > :01:57.And it's the health of the banking system.
:01:58. > :02:00.Bank shares have been absolutely hammered in recent days,
:02:01. > :02:14.One of Europe's biggest investment banks, Credit Suisse.
:02:15. > :02:17.Shares down 43% this year to their lowest in 27 years.
:02:18. > :02:20.Another one, Deutsche Bank, down 39% this year to a record low.
:02:21. > :02:22.And their US rivals, Morgan Stanley, Citigroup and Bank
:02:23. > :02:25.of America have all lost around a third of their value this year.
:02:26. > :02:32.European banks alone are already owed a trillion dollars they are
:02:33. > :02:34.unlikely to get back, so called non-performing loans,
:02:35. > :02:43.That's equivalent to the annual GDP of Spain.
:02:44. > :02:47.Investors fear a rising tide of bad debt from the likes of oil
:02:48. > :03:04.and mining companies who borrowed to expand when times were better.
:03:05. > :03:07.Well, what we see right now is a big crisis coming up maybe
:03:08. > :03:10.The banks are under pressure, especially the banking sector,
:03:11. > :03:13.so what we see is a huge pressure on the market.
:03:14. > :03:15.Investors are very nervous, especially about the banking sector,
:03:16. > :03:19.but also of course about the oil price, the low oil price and so on.
:03:20. > :03:22.So we have altogether a very negative scenario right now
:03:23. > :03:41.Vicky Pryce, the Chief Economics Adviser at the Centre for Economic
:03:42. > :04:00.Great to have you with us. This scares that the Jesus out of me. We
:04:01. > :04:06.could be looking at a crisis that comes from bad debt in
:04:07. > :04:12.corporations. Yes, and that is in a way more scary than the previous
:04:13. > :04:16.one. You can handle the previous crisis, not that the well handled it
:04:17. > :04:24.very well. Now we are talking about sectors that are really struggling,
:04:25. > :04:27.like oil and mining, the companies that have been selling to places
:04:28. > :04:33.like China, where there is now a slowdown. A number of companies have
:04:34. > :04:36.been borrowing and expanding, and betting on the growth in Asia
:04:37. > :04:40.continuing. But now we are seeing all of those great countries with
:04:41. > :04:49.the exception of India, being in recession. Apart from India... Is
:04:50. > :04:54.the worry also that if we enter another global recession, another
:04:55. > :04:59.crisis, that all the central banks around the world have got no tools
:05:00. > :05:02.left to fight? They are still using the full
:05:03. > :05:11.left to fight? They are still using the -- the tools to fight the 2008
:05:12. > :05:14.crisis. Yes, they have constructed capital ratios in such a way that
:05:15. > :05:22.actually make it much harder for banks to be lending to various parts
:05:23. > :05:26.of the economy. So, in a way, despite the fact that they did lend
:05:27. > :05:29.to different sectors, they haven't done as much as they would have done
:05:30. > :05:34.otherwise. We have a stronger banking system with better capital
:05:35. > :05:37.ratios than it had before. One problem is that quite a lot of what
:05:38. > :05:42.they have been lending, even though it was limited this time around, is
:05:43. > :05:49.now falling apart, so we are seeing big losses in places like Europe,
:05:50. > :05:57.where the one German global bank, Deutsche bank, made huge losses last
:05:58. > :06:03.year. So did credit Suisse. So, you see influences of that in Italy and
:06:04. > :06:06.other countries, and also in the UK. The result is that everybody is
:06:07. > :06:11.looking at the banking sector and wondering if it is going to perform,
:06:12. > :06:18.or whether losses will be even greater. Shareholders are panicking,
:06:19. > :06:23.and that is what is going on. Thank you very much, we appreciated.
:06:24. > :06:25.Let's go straight to Asia where the market turmoil continues.
:06:26. > :06:37.Any cheery notes coming from where you are? I have to tell you, it is
:06:38. > :06:39.probably a good thing that the mainland Chinese markets are still
:06:40. > :06:43.close to the New Year holiday, because there has been a pretty
:06:44. > :06:47.routine day for stocks that are trading in this region. We are
:06:48. > :06:50.seeing a bit of buying this afternoon, but it is pretty hard to
:06:51. > :06:55.guess what will be a catalyst for change in sentiment. If we look at
:06:56. > :07:02.regional markets, Japan heading into the closedown, 3.9%. It was down
:07:03. > :07:05.more than 5% at one point this morning, and that is on top of the
:07:06. > :07:14.7% decline earlier in the week. Hong Kong down 0.8%. Australia has closed
:07:15. > :07:22.down just over 1%. Australia is officially in a bear market, as is
:07:23. > :07:25.Japan, down 27% from last year. Global growth, worries about China,
:07:26. > :07:29.oil prices, and especially in Japan, that question of what else
:07:30. > :07:33.the central bank can do to get the country's economy moving. Now it has
:07:34. > :07:39.introduced negative interest rates. It said it wouldn't, but now it has
:07:40. > :07:42.gone ahead and done it anyway. Analysts are now seeing the markets
:07:43. > :07:47.feeding on themselves, and the question is what the circuit breaker
:07:48. > :07:51.will be. Not good, and we are seeing more central banks introducing this
:07:52. > :07:53.so-called negative interest rate. Great stuff, we will leave it there
:07:54. > :08:00.and talk to you soon. Don't shoot the messenger is, it is
:08:01. > :08:01.not a good picture but we will keep across it for you.
:08:02. > :08:03.We also have the last in our week-long series on
:08:04. > :08:07.Bill Gates, the late Steve Jobs, Mark Zuckerberg -
:08:08. > :08:10.apart from making billions, what else do they have in common?
:08:11. > :08:11.Answer, they're all college drop-outs.
:08:12. > :08:13.So why bother with a business degree,
:08:14. > :08:16.if you can make it to the top of the business world without one?
:08:17. > :08:19.That's a question more and more people are asking as the
:08:20. > :08:31.Michelle Fleury reports from New York.
:08:32. > :08:38.Columbia business School, a Masters of business administration, or MBA,
:08:39. > :08:43.at this Ivy League university, will set you back $130,000. A figure that
:08:44. > :08:49.doesn't even include expenses like books and cost of living, so is it
:08:50. > :08:59.worth it? Michael Malone, associate dean at the school, thinks so. When
:09:00. > :09:04.we look at their success and track record of the school, with people
:09:05. > :09:08.going into jobs that they find incredibly fulfilling, and to make
:09:09. > :09:14.back not just the money but to use as a launchpad for their career, for
:09:15. > :09:17.me it is a no-brainer. Many people are lured by the prospect of a
:09:18. > :09:24.handsome starting salary after they finish. Last year, the starting
:09:25. > :09:27.salary was said to be $100,000. Critics say getting an MBA is
:09:28. > :09:33.unnecessary, and many business school curricula are outdated. The
:09:34. > :09:36.value of graduate business degree also depends on where the degree is
:09:37. > :09:41.from, on the ranking of the school. Then there is another question, can
:09:42. > :09:53.leadership even be taught in the classroom? Meat can, an
:09:54. > :10:01.entrepreneur, who hopes his degree will give him and the company he
:10:02. > :10:04.founded a leg up. I have been through the trenches, having started
:10:05. > :10:09.from absolutely nothing, creating something, and hopefully creating
:10:10. > :10:13.the business further. You have to have that mentality straightaway,
:10:14. > :10:17.and an MBA won't give you that necessarily. It will give you tools
:10:18. > :10:21.but it won't make you an entrepreneur. He recently put his
:10:22. > :10:26.studies on hold to focus on his start-up. As for his MBA, he still
:10:27. > :10:29.wants to finish it eventually. If not, he won't be the first company
:10:30. > :10:35.leader to put his business before his education.
:10:36. > :10:39.Shares of Boeing plunged as much as 11% on Thursday after a report
:10:40. > :10:41.that US regulators are investigating its accounting practices.
:10:42. > :10:42.According to Bloomberg, the Securities and
:10:43. > :10:44.Exchange Commission is investigating whether the planemaker properly
:10:45. > :10:49.accounted for billions of dollars of development costs from airliners
:10:50. > :10:53.Don't forget you can get in touch with me and some of