13/06/2011 World Business Report


13/06/2011

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the latest headlines. It is now time for the latest financial news.

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Here is Sally with World Business Report. Hello and a warm welcome.

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The headlines: As thousands turnout in Athens for another night of

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protest, there is a fresh call on the Prime Minister to reshuffle his

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cabinet. The boss of General Electric

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presents President Obama with his initial report on what can be done

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to boost job creation in the US. Flights out of Melbourne that

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Parisian but the ash cloud perfects flights in Hobart and New Zealand.

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-- affects flights in Hobart and New Zealand. As anti- austerity

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protests in Athens and have therefore squeaker the country's

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Prime Minister is under increasing pressure to reshuffle his cabinet.

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One of his deputies has openly called for the Finance Minister and

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others to be replaced by a new economic team involving officials

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from other parties. Local reports suggest he is considering the move

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but only if the main opposition party backs his revised savings

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plan in a parliamentary vote later this month. To talk us through the

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issues I am joined by our electric -- owl expert in the Greek economy.

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What do you make of these calls that have been gathering pace over

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the weekend for a reshuffle of Cabinet? The Greek programme of

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economic reforms so far has not achieved the progress they had

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hoped. People are starting to look for solutions. One of these is the

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possibility of a reshuffle. For the time being, these calls came from

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quarters which opposed the reform. From that point of view I do not

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think that based on these calls there will be such a reshuffle and

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particularly a replacement of the Minister of National economy. But

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on the other hand there is some pressure from EU countries for the

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ma maion party to support these reforms, in which case, if

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there is a basis through which the government and the main opposition

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party do agree on some kind of co- operation, I would say it is

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possible to have such kind of replacement. The possibility of

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such an agreement at this stage is relatively small but not completely

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non-existent. If there were a new economic team, do you think it

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would make it easier for Greece to get more money, more borrowing next

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year? This is the issue. The Greek debt situation is not getting any

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easier for the government to sort out. If that were to be within the

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context of a government of wider acceptance, a kind of co-operation

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between the government and the main opposition party, then yes. Because

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that would send a strong signal that the two main parties agree on

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the basic principles of reform. Then the programme and its

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implementation will be easier to follow. But that will not

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necessarily bring the interest rate down for the Greek authorities. It

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is very expensive for them to borrow. Yes. For the interest rates

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to decline, you need to seek not only words but action. They need to

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have a realistic plan. They need to show the determination to implement

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the plan. We will watch this space and keep everybody in touch. Taiz

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volcanic ash continues to cause problems for the airline industry.

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Carriers in Australia and New Zealand are the latest affected

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with dozens of flights cancelled because of an eruption in Chile.

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Let's get the latest from Our Sydney Correspondent. What is the

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latest? Some flights have resumed out of Melbourne airport. That

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airport was shut down. That is why the biggest airports in Australia.

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So it there has been a huge knock- on effect around the country

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because of that. But the ash cloud is still causing huge problems in

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Tasmania, where the Hobart airport remains shut. And also, flights

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between Australia and New Zealand have been affected. Qantas are

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still grounding those fires. Some 30,000 passengers have been

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affected. It's it's is there a real worry about what will happen next?

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When you talk about volcanic ash in Europe, a shiver goes down

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everybody's spine. What is the feeling about where you are about

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how difficult this could become? is remarkable that it has affected

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his part of the world. This was from a volcano in Chile. You would

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expect it to cause problems in South America, but not in

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Australia! Virgin Airlines started operating flights. Qantas is far

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more cautious. It has a policy where if there is a significant ash

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cloud in the atmosphere, they do not fly at all. New Zealand have

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been flying. They have been trying to conduct the tours around the ash

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cloud and fly at low altitude. There is the concern that there

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will be a knock-on effect, not only from the ash cloud, but from the

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knock-on effect. Thank you very much.

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Pravda has revealed it hopes to raise as much as $2.6 billion to

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its flotation on the Hong Kong Stock Exchange. The Italian firm

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sale prospectus says some of that raised will be used to raise its

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network. The stock price is due to be confirmed on Friday. Trade

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starts one week it might have. The Israel's central bank chief has

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one of the backing of the Palestinian to stand for IMF

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President. He was described as a superb human being who would make a

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great managing director. However the Palestinian Authority is not

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involved in the selection process and experts say France's Christine

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Lagarde remains the favourite. China's efforts to restrict bank

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lending appear to be working. Data shows that new loans totalled $85

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billion in May, lower than previous month. The central bank has made a

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lender's' Reserve will require us to record levels and told them to

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scale back loads to the property sector. Experts warned not to read

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too much into single month numbers. Talking of reading into numbers,

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President Obama today receives his first progress report from the

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Council of business chiefs asked to suggest steps to boost employment.

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The panel, led by General Electric, delivered its suggestions just over

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one week after the joblessness rate rose. It's with roughly one in ten

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of Americans out of work, President Obama is selling his support behind

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the country's Community College system to change the way people

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find new jobs. Here they retrain the unemployed and according to

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this man, they are busier than ever. They come from all walks of life.

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That is the interesting thing from this recession. Nobody has been

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spared. People have to reinvent themselves. At this community

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college they do not only retrain those looking for a job. They also

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work with local businesses to help them find new opportunities which

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they hope will eventually lead to more job creation. One graduate is

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Michael, owner of a coffee lounge. He has a staff of 12 and also

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supplies the New York branches of a supermarket chain. He says the

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course was invaluable. encompassed what we needed. We had

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a great idea and I understood budgeting from other businesses I

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had been involved in, but it solidified what we were lacking the

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most. The biggest challenge that we are seeing now is the fact that

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unemployment is still way too high. Since the President's job Council

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met last February, the recovery has slowed. With opinion polls showing

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more of their -- more Americans disapproval of his handling of the

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economy, his own job may be at risk. It is all these issues we talked

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about in today's show, the situation with Greece, the slowing

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recovery in the US economy, that is the general feeling that is pulling

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down these market today. There is not specific corporate news

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