12/02/2016 World Business Report

Those are the latest headlines from BBC News.

Now for the latest financial news with Aaron Heslehurst and

Global shares enter a bear market: Banks get another

mauling as worries grow about the health of the financial system.

Plus, Gates, Jobs, Zuckerberg: When college dropouts can make billions,

We take a look at the decline in business education.

We'll have the latest from the Asian markets in a moment, but first:

We start with the turmoil on global financial markets because US shares

have fallen for the fourth day in a row after more heavy losses in

Europe. Markets in China are still closed for the Lunar New Year but

Markets in China are still closed for the Lunar New Year but elsewhere

We'll bring you those numbers in a moment.

As of last night, global shares have now reached a grizzly milestone.

That's what investors call a 20% fall from the peak

and that is what the index of top global shares, known as the

It signals a major loss of investor confidence and often

We know about the worries about China, and the global economy,

and oil prices, but there's a more specific concern emerging too.

And it's the health of the banking system.

Bank shares have been absolutely hammered in recent days,

One of Europe's biggest investment banks, Credit Suisse.

Shares down 43% this year to their lowest in 27 years.

Another one, Deutsche Bank, down 39% this year to a record low.

And their US rivals, Morgan Stanley, Citigroup and Bank

of America have all lost around a third of their value this year.

European banks alone are already owed a trillion dollars they are

unlikely to get back, so called non-performing loans,

That's equivalent to the annual GDP of Spain.

Investors fear a rising tide of bad debt from the likes of oil

and mining companies who borrowed to expand when times were better.

Well, what we see right now is a big crisis coming up maybe

The banks are under pressure, especially the banking sector,

so what we see is a huge pressure on the market.

Investors are very nervous, especially about the banking sector,

but also of course about the oil price, the low oil price and so on.

So we have altogether a very negative scenario right now

Vicky Pryce, the Chief Economics Adviser at the Centre for Economic

Great to have you with us. This scares that the Jesus out of me. We

could be looking at a crisis that comes from bad debt in

corporations. Yes, and that is in a way more scary than the previous

one. You can handle the previous crisis, not that the well handled it

very well. Now we are talking about sectors that are really struggling,

like oil and mining, the companies that have been selling to places

like China, where there is now a slowdown. A number of companies have

been borrowing and expanding, and betting on the growth in Asia

continuing. But now we are seeing all of those great countries with

the exception of India, being in recession. Apart from India... Is

the worry also that if we enter another global recession, another

crisis, that all the central banks around the world have got no tools

left to fight? They are still using the full

left to fight? They are still using the -- the tools to fight the 2008

crisis. Yes, they have constructed capital ratios in such a way that

actually make it much harder for banks to be lending to various parts

of the economy. So, in a way, despite the fact that they did lend

to different sectors, they haven't done as much as they would have done

otherwise. We have a stronger banking system with better capital

ratios than it had before. One problem is that quite a lot of what

they have been lending, even though it was limited this time around, is

now falling apart, so we are seeing big losses in places like Europe,

where the one German global bank, Deutsche bank, made huge losses last

year. So did credit Suisse. So, you see influences of that in Italy and

other countries, and also in the UK. The result is that everybody is

looking at the banking sector and wondering if it is going to perform,

or whether losses will be even greater. Shareholders are panicking,

and that is what is going on. Thank you very much, we appreciated.

Let's go straight to Asia where the market turmoil continues.

Any cheery notes coming from where you are? I have to tell you, it is

probably a good thing that the mainland Chinese markets are still

close to the New Year holiday, because there has been a pretty

routine day for stocks that are trading in this region. We are

seeing a bit of buying this afternoon, but it is pretty hard to

guess what will be a catalyst for change in sentiment. If we look at

regional markets, Japan heading into the closedown, 3.9%. It was down

more than 5% at one point this morning, and that is on top of the

7% decline earlier in the week. Hong Kong down 0.8%. Australia has closed

down just over 1%. Australia is officially in a bear market, as is

Japan, down 27% from last year. Global growth, worries about China,

oil prices, and especially in Japan, that question of what else

the central bank can do to get the country's economy moving. Now it has

introduced negative interest rates. It said it wouldn't, but now it has

gone ahead and done it anyway. Analysts are now seeing the markets

feeding on themselves, and the question is what the circuit breaker

will be. Not good, and we are seeing more central banks introducing this

so-called negative interest rate. Great stuff, we will leave it there

and talk to you soon. Don't shoot the messenger is, it is

not a good picture but we will keep across it for you.

We also have the last in our week-long series on

Bill Gates, the late Steve Jobs, Mark Zuckerberg -

apart from making billions, what else do they have in common?

Answer, they're all college drop-outs.

So why bother with a business degree,

if you can make it to the top of the business world without one?

That's a question more and more people are asking as the

Michelle Fleury reports from New York.

Columbia business School, a Masters of business administration, or MBA,

at this Ivy League university, will set you back $130,000. A figure that

doesn't even include expenses like books and cost of living, so is it

worth it? Michael Malone, associate dean at the school, thinks so. When

we look at their success and track record of the school, with people

going into jobs that they find incredibly fulfilling, and to make

back not just the money but to use as a launchpad for their career, for

me it is a no-brainer. Many people are lured by the prospect of a

handsome starting salary after they finish. Last year, the starting

salary was said to be $100,000. Critics say getting an MBA is

unnecessary, and many business school curricula are outdated. The

value of graduate business degree also depends on where the degree is

from, on the ranking of the school. Then there is another question, can

leadership even be taught in the classroom? Meat can, an

entrepreneur, who hopes his degree will give him and the company he

founded a leg up. I have been through the trenches, having started

from absolutely nothing, creating something, and hopefully creating

the business further. You have to have that mentality straightaway,

and an MBA won't give you that necessarily. It will give you tools

but it won't make you an entrepreneur. He recently put his

studies on hold to focus on his start-up. As for his MBA, he still

wants to finish it eventually. If not, he won't be the first company

leader to put his business before his education.

Shares of Boeing plunged as much as 11% on Thursday after a report

that US regulators are investigating its accounting practices.

According to Bloomberg, the Securities and

Exchange Commission is investigating whether the planemaker properly

accounted for billions of dollars of development costs from airliners

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