17/08/2011 World Business Report

For the latest financial news, it is a bold business report. -- World

Business Report. Welcome. The headlines: Looking for

solutions to the debt crisis. Europe will consider plans from

France and Germany for closer economic co-operation.

The Swiss government meets today to work out how to deal with the

threatening way high Swiss franc. - - higher.

Manchester United considers an Asian share sale.

No plans for a bond backed by the whole of Europe. But France and

Germany did call for a new economic government for eurozone countries

to be led by the political leaders of those countries. They advocated

a tax on financial transactions to raise more revenue. The plans will

be detailed in a letter to the president of the European Union

today and sent to other members for consideration. Spain has already

voiced its approval. The German Chancellor said there was no quick

fix solution to the crisis. TRANSLATION: I do not think Europe

is at the point of needing its last resort. And I do not think that we

can solve these problems quickly. We are proposing a means of winning

back trust step by step. I do not think eurobond will help us in this.

Is this another fudged statement? No increase in the sides of the

bail-out fund? What do you think the market will think? They will

probably think this is another missed opportunity. France and

Germany have said that the core companies -- countries are not

willing to open the covers any more. Improved fiscal discipline which is

only part of the puzzle, economic growth is another part, these by

not addressed at all in the meeting. If Sarkozy and Merkel want to draw

a line in the crisis, they need to address the size and say that there

would be moves towards a eurobond. We have had released by dish growth

numbers coming out from Germany which used to be the powerhouse of

Europe. And also, if they are not growing, these countries are able

to pay back their debt quickly. Not quite such an -- not a big problem

for Germany, but is it not time to act now? This is partly why France

and Germany have not addressed the eurobond. It would be impossible

for them to sell the idea to their electorate on the same day they

have announced stagnating growth. We have seen some of the reaction

in Europe yesterday and in Asia reaction. Not that favourable.

Would the greater size of that European bail-out fund do more to

reassure them? The ECB is stepping into Spanish bonds in great numbers.

Eventually it will stop. That is probably when their reports are

approved in October. At that point the E S F at will step in to buy a

bond. This will have to be increased in size. Is this the

right time to raise taxes on banking transactions? I do not

think so. It has been mooted before by France. If it was legislated, it

would be almost impossible to implement it. Thank you.

Swiss government ministers made later today to discuss the

continued strength of the franc. Switzerland's currency has risen

around 25% against the euro in the last 18 months, posing a major

threat to Swiss products, over half of which are sold abroad. It could

push the country into recession. In recent weeks, the Swiss franc

has risen to undreamt-of levels, reaching near parity with the euro

at the start of this month. Intervention by the Swiss National

Bank, cutting interest rates and increasing liquidity, has stemmed

the rise but only modestly. The franc is now hovering at just over

110 to the euro. A long way from the 130 which worries Swiss

manufacturers. Switzerland is a small open economy. A small -- a

larger amount of goods and services are being exported. Competitiveness

is important for such an economy. This is a worry some situation. The

Swiss National Bank did make a correct move, showing there are

limits to how far the Swiss franc can go. Some economists are warning

of a recession if the franc stays so high. A rise in unemployment is

predicted this autumn as companies lay off staff in an attempt to

reduce operating costs. This was government is meeting today to

discuss the franc but no-one is sure what options are on the table.

More extreme suggestion, pegging the franc to the euro. This would

be politically divisive in Switzerland, which remains firmly

outside the European Union. Tough choices lie ahead for this small

country who's -- whose traditionally strong economy is

looking increasingly fragile amid the last crisis of the eurozone.

The BBC has learnt that the owners of Manchester United have

considered a share sale in Singapore. Is this because Asia is

a great growth area or for Manchester United? Absolutely. Not

only Singapore but the rest of the region is a key growth area for

Manchester United. The team has fan clubs across the region from

Thailand, Singapore and South Korea. Reports say the club plans to raise

about 1 billion US dollars through an initial public offering here in

the city state before year's end. Earlier I spoke with a sports

consultant who stressed it but this move means commercially --

commercially for the football club. They wanted to tap into what they

know as their massive audience base over here. They did research some

years ago that established that they have about 300 million fans.

Two-thirds of those are in Asia. There is an enormous population

base in Asia that they have not to tap into yet. Financially, this

will make sense from a point of believing that debt burden. They

will open the doors to fans by creating a foothold in Asia. They

will also open up channels two new sponsors. They have had a

management operations here prospecting for commercial partners

for the club but I see this as a more aggressive move to make an

even bolder presence in Asia. Manchester United officials have

declined to comment on this potential share sale. According to

Forbes magazine, it has wrecked the club as the second most valuable

sports brand, only second to the New York Yankees. -- ranked. The

move by the football club to have an initial offering is one of a

number of refinancing options the club's American owners are

examining according to reports. They say if the glazier family

pushes through, it will only consider selling a minority stake,

perhaps no more than 25%. Thank you. Sony is cutting the

price of its PlayStation 3 game console by $50 to boost demand for

the now ageing console. It will cost $249, down from 299. The price

cut follows a similar move from rival Nintendo. The PlayStation 3

has been on the market for five years now and a new model will be

launched later this year. Shares in computer company Dell

have fallen in after I was trading after the firm cut its sales

forecast for this year. It says technology spending has weakened.

Deal also recorded net income of about $890 million.

From the White House -- the White House has hit back at controversial

comments made by a Republican presidential candidate. He said it

would be treasonous if the US Federal Reserve chairman printed

more cash. A spokesman accused him For more news from the UK: Some of

Britain's most vulnerable members are being restored thanks to a new

project. Researchers are hand picking native species of which

will be reintroduced to meadows in the hope of new growth.

Researchers collect wild flower seed that a nature reserve in

Sussex. They want to multiply seats they gather here and to learn more

about species in this rare meadow habitat. We are collecting species

which are not easily picked up in a machine harvest. Things that are

ripe early in the season all late in the season. Things that

commercial seed growers have problems germinating. We can pick

this up and do research work on them. The project is part of the

Millennium seed Bank with a storm 96% of the UK's native plant

species. They want to use their expertise to build up wildflower

seed stocks. In part, that will happen in production beds like

these and together with commercial growers who can block the seats up,

the UK native seed hob will help conservation groups, landowners and

farmers to restore habitat. The focus will first be on the land

meadows, but the attention will move to other habitats, including

grasslands and woodlands. The amount of pocket money children

are receiving has gone up. Despite feeling the pinch, parents are

giving an average of six pound 25 a week to their loved ones. An extra

36p per week. Don't spend it all at once.

Coming up, Breakfast. The day's news, business and sport and the

way shops are being designed and ways to encourage people to buy

things. This is BBC World news. The

headlines: France and Germany have called for more political

integration in the eurozone to tackle the debt crisis in Europe.

The proposals put forward by Nicolas Sarkozy and Angela Merkel

have done little to reassure investors.

Rupert Murdoch's son James may be recalled by the British

parliamentary committee investigating the phone hacking

scandal. News of the World's former royal editor claimed that hacking

was regularly discussed at editorial meetings.

Government forces in Syria have reportedly opened fire on a port

city for a fourth day. The wind has again expressed concern over the

crisis of 5,000 Palestinian refugees in the city.

Forces loyal to Colonel Gaddafi continued to battle the Buick --

Libyan rebels for control of Zawiya west of Tripoli. They have cut

Two years ago represents gathered at the site of a former Nazi

concentration camp north of Prague. They declared among other things to

speed up the return of private property seized from the Jews

during the holocaust and never returned. This is the habidatiery