22/04/2016

Download Subtitles

Transcript

:00:00. > :00:00.Those are the latest headlines from BBC News.

:00:00. > :00:00.Now for the latest financial news with Aaron Heslehurst and

:00:00. > :00:17.It's the US charm offensive as President Obama hits Europe,

:00:18. > :00:20.and high on the agenda is that big free trade agreement.

:00:21. > :00:22.But here's his problem, at home many feel these agreements

:00:23. > :00:29.are ripping off America and losing American jobs.

:00:30. > :00:33.And just when you thought it was safe to go back in the water,

:00:34. > :00:37.Negotiations start once again and once again it's all about that

:00:38. > :01:05.One of the top items during President Obama's European tour is

:01:06. > :01:08.a free trade agreement between the US and Europe called the TTIP.

:01:09. > :01:11.And, by the way, the President is also keen for Congress to pass

:01:12. > :01:14.a similar deal with Asia, called the TPP, before he leaves office.

:01:15. > :01:17.But free trade isn't popular ahead of the presidential elections.

:01:18. > :01:19.In the last year it has massively lost support among Americans.

:01:20. > :01:23.In fact many have been saying their country is being ripped off in

:01:24. > :01:29.Support for a trade deal has also fallen in Europe.

:01:30. > :01:32.A recent survey showed that only 17% of Germans support the TTIP,

:01:33. > :01:36.And in the UK, hundreds of thousands of people have

:01:37. > :01:39.signed a petition to stop president Obama from agreeing on the deal.

:01:40. > :01:42.If there is one thing these presidential candidates may come

:01:43. > :01:48.close to agreeing, it is free trade. Our country is getting ripped

:01:49. > :01:53.off and trade. Disastrous trade agreements written by corporate

:01:54. > :01:57.America. We have lost American jobs. So what do voters want? Trade

:01:58. > :02:03.agreements that are fair and allow manufacturing jobs to return to

:02:04. > :02:09.America. We are against the DPP and other trade treaties because they

:02:10. > :02:14.move jobs from here to a broad. But is it right that politicians and

:02:15. > :02:18.voters are blaming trade agreement for the loss of American jobs? They

:02:19. > :02:24.are trying to find something to blame the ills of the country upon

:02:25. > :02:29.and they have fastened upon trade. Support for the trade deal is also

:02:30. > :02:37.falling in Europe. A survey showed that only 17% of Germans support the

:02:38. > :02:41.TTI PE, down from 55% just two years ago and in the UK, nearly 150,000

:02:42. > :02:48.people have signed a petition to stop President Obama from agreeing

:02:49. > :02:52.on the deal. The 13th round of negotiations will be held here in

:02:53. > :02:58.New York next week but even if an agreement is reached before

:02:59. > :03:02.President Obama leaves office, there is now doubt whether his successor

:03:03. > :03:05.will pursue the deal and the same uncertainty applies to another trade

:03:06. > :03:14.deal with Asia, the transpacific partnership.

:03:15. > :03:18.It's been at least several weeks since we last

:03:19. > :03:22.Well guess what today eurozone finance ministers meet in Amsterdam

:03:23. > :03:24.and Greece's massive public debt, all $360 billion of it,

:03:25. > :03:28.After months of wrangling, some signs of agreement are

:03:29. > :03:29.emerging between Athens and its international lenders.

:03:30. > :03:32.And that I tell you is vital before Athens can get

:03:33. > :03:59.Dr James Nixon, Chief European Economist, Oxford Economics.

:04:00. > :04:10.Can you catch all of us up? Where are we at The Miz we are in the

:04:11. > :04:15.third -- where are we at? We are in the third bailout with Greece?

:04:16. > :04:19.That's right. We have dealt with the arrears to the IMF and the ECB and

:04:20. > :04:23.now we are coming to the first sticking point which is the bailout

:04:24. > :04:26.review. It is the first time that all the lenders are getting back

:04:27. > :04:30.into the country, getting their hands on the books and coming up

:04:31. > :04:34.with the assessment of how much more Greece needs to do to hit its

:04:35. > :04:39.targets. At the moment I am reading that the sticking points with this

:04:40. > :04:44.one are that Greece's lenders come at the European Union, the ECB and

:04:45. > :04:53.the IMF wants Greece to reduce the tax threshold as well as VAT, they

:04:54. > :04:56.want that to go up? There are a variety of measures. The IMF have

:04:57. > :05:05.been arguing that in order to get to the three and a half % primary

:05:06. > :05:09.surplus, they need to have more on top of what they have done in the

:05:10. > :05:17.last year's budget. Tighten fiscal policy by 4%? The bottom line is

:05:18. > :05:23.that is a huge number for an economy that has already collapsed by a

:05:24. > :05:28.quarter. Arguably come out what the Greeks are saying is that mean

:05:29. > :05:33.severely cutting things like pension payments and raising taxes again on

:05:34. > :05:38.people and companies. It means doing things like raising VAT and cutting

:05:39. > :05:42.back personal allowances and all of those things will detract from the

:05:43. > :05:48.economy and bring down GDP and it becomes a self of selling cycle.

:05:49. > :05:57.Isn't part of the problem also that we have the lenders going at each

:05:58. > :06:01.other? The IMF has said the money that Greece already knows will never

:06:02. > :06:09.be paid back, they will not be able to, it is unrealistic. The European

:06:10. > :06:13.Union and the ECB disagree. Absolutely. The IMF have essentially

:06:14. > :06:18.said the kind of tightening that is needed to undertake in order to

:06:19. > :06:22.achieve these targets is completely unrealistic but the European Union

:06:23. > :06:26.can't really contemplate a debt write-off because they are still

:06:27. > :06:30.lending money to grease. You can't simultaneously lend money and then

:06:31. > :06:37.write it off because then it is just a gift -- Greece. Some people will

:06:38. > :06:41.say that that is what is happening even though Europe is not saying

:06:42. > :06:47.it. All that money being poured and is not coming back. That is what

:06:48. > :06:52.they're arguing about. The ideas to get Greece to sufficiently large

:06:53. > :06:58.surpluses for perpetuity in order to pay that money back, probably over

:06:59. > :07:00.the next 50-100 years. The problem for the Greeks is that we are

:07:01. > :07:03.creating a European Union where essentially the poor countries will

:07:04. > :07:08.be paying back money to the rich countries for the next 100 years.

:07:09. > :07:18.Are you optimistic a deal can be done? No. OK, great. Thank you.

:07:19. > :07:20.Shares of embattled Japanese car maker Mitsubishi Motors continue

:07:21. > :07:23.their massive decline, after the company admitted it had

:07:24. > :07:25.overstated the fuel efficiency of 625,000 cars sold in Japan.

:07:26. > :07:37.And now US auto safety regulators are getting in on the act.

:07:38. > :07:39.Over now to our resident petrolhead, Rico Hizon in Singapore.

:07:40. > :08:00.So, Rico, how much are the shares down now?

:08:01. > :08:08.Stocks in Mitsubishi motors finally were traded today and the freefall

:08:09. > :08:16.continues. A short while ago they were down around 13% to 506 yen per

:08:17. > :08:20.share but that is an improvement from Thursday when the Tokyo Stock

:08:21. > :08:24.exchange wasn't able to match orders of sellers and buyers, so as you

:08:25. > :08:37.mentioned, no deals were executed and the price was forced down 20% to

:08:38. > :08:40.583 yen. Sent Wednesday, when the news of the fuel teaching first

:08:41. > :08:46.broke, the stock has plunged more than 40% and panic selling has wiped

:08:47. > :08:49.more than two and a half billion dollars off the manufacturer's

:08:50. > :08:54.market value in two days after getting to falsifying test data to

:08:55. > :09:00.make its emissions look more favourable. This has raised

:09:01. > :09:06.questions about the future of Mitsubishi as it faces the prospect

:09:07. > :09:10.of huge losses and finds. Analysts say the compensation bill may run

:09:11. > :09:17.into the hundreds of millions of dollars but the reputational damage

:09:18. > :09:24.to Mitsubishi will be far bigger. Thank you.

:09:25. > :09:26.In other news: Earnings at Google's parent company Alphabet have

:09:27. > :09:29.disappointed the markets, despite a 20% increase in profits in

:09:30. > :09:32.Revenues at the world's second largest company

:09:33. > :09:35.rose to over $20 billion, but that didn't stop its shares tumbling more

:09:36. > :09:49.Google isn't the only one to disappoint.

:09:50. > :09:52.Shares in Starbucks falling more than 5% after it also missed revenue

:09:53. > :09:56.The coffee chain's earnings came in slightly under what analysts

:09:57. > :10:00.Demand in the US, as well as solid sales in Asia helped to

:10:01. > :10:14.offset slow growth in Europe, but still missed market expectations.

:10:15. > :10:16.PSA Peugeot Citroen offices have been raided

:10:17. > :10:18.by anti-fraud investigators as part of ongoing investigations

:10:19. > :10:21.The firm said its vehicles are emissions compliant.

:10:22. > :10:24.Authorities and car manufacturers have been on the alert in the wake

:10:25. > :10:36.of the Volkswagen emissions scandal, which emerged in late September.

:10:37. > :10:39.Don't forget you can get in touch with me and some of

:10:40. > :10:57.There are thought to be more than 200,000 miscarriages

:10:58. > :11:01.But despite the number, and the devastating effect they can