Browse content similar to 10/11/2011. Check below for episodes and series from the same categories and more!
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-- a number of. Now for the latest A warm welcome, you are with World | :00:14. | :00:20. | |
Business Report. These are the headlines: Italy will try to raise | :00:20. | :00:24. | |
EUR5 billion today in the face of evaporating investor confidence in | :00:24. | :00:31. | |
the country. Contagion fears, age and stocks are down sharply because | :00:31. | :00:37. | |
of travels in Italy. -- Asian stocks. And life after the bail-out. | :00:37. | :00:41. | |
Strikes, austerity in Portugal as it tries to cling to European | :00:41. | :00:51. | |
:00:51. | :00:52. | ||
Good to have you with us. Later today Italy will try to auction | :00:52. | :00:56. | |
EUR5 billion worth of government bonds in the face of fast | :00:56. | :01:02. | |
evaporating investor confidence. Wednesday's deep falls on global | :01:02. | :01:05. | |
stock markets and the worst day for the euro in more than a year is | :01:05. | :01:10. | |
testament to the level of fear now about the eurozone debt crisis. The | :01:10. | :01:15. | |
trigger... another surge in the borrowing costs faced by Italy with | :01:15. | :01:19. | |
over two trillion dollars of debt, it is seen by many as too big to | :01:19. | :01:24. | |
fail but too big to bail out. In a moment we will have the latest on | :01:24. | :01:29. | |
the Asian markets where the sell- off is continuing. But first, this | :01:29. | :01:34. | |
from Nigel Cassidy. It is coming to the crunch. Italy's | :01:35. | :01:38. | |
been paying more to borrow than Ireland, Greece and Portugal before | :01:38. | :01:43. | |
they were bailed out. If it turns out the commercial buyers don't | :01:43. | :01:47. | |
want Italy's paper, Silvio Berlusconi will be forced to seek | :01:47. | :01:51. | |
aid from the International Monetary Fund and the EU. Something he has | :01:51. | :01:56. | |
set himself against. Italy's lenders push up loans because they | :01:56. | :02:00. | |
don't believe the European Central Bank is backing the country by | :02:00. | :02:04. | |
buying another of its bombs. There is little faith in Italy's ability | :02:04. | :02:13. | |
to deliver on promised austerity measures. This City of London firm | :02:13. | :02:17. | |
analyses risks and they think there is a 65% tranche of both Italy and | :02:17. | :02:22. | |
Greece defaulting by the end of November -- 65% chance. They say | :02:22. | :02:29. | |
euros a leaders are much more likely to be cut by the crisis -- | :02:29. | :02:33. | |
eurozone leaders. Italy needs to be able to demonstrate to those | :02:33. | :02:37. | |
creditors that the money they are given will be refunded. There are | :02:37. | :02:43. | |
clear doubts, that is why we have so many problems. If Italy cannot | :02:43. | :02:49. | |
sell those debts, we suspect, the probability we have put on it is | :02:49. | :02:54. | |
65% that markets will say, "We're not happy to hold onto Italian | :02:54. | :03:02. | |
paper any more". Italy may be able to sell its sponsors today at a | :03:02. | :03:07. | |
cut-price. But how will they roll over its longer-dated bonds in | :03:07. | :03:14. | |
early 2012 and raise the billions it needs to stay afloat. | :03:14. | :03:19. | |
Now in Singapore, how are the market's trading? Rico, not | :03:19. | :03:27. | |
surprisingly it has been a tough session. Indeed. It hasn't been a | :03:27. | :03:32. | |
good day for Asian investors. All markets are in the red. The Nikkei | :03:32. | :03:40. | |
is down 3% as well as Australia. Hang Seng is down about 4.5%, while | :03:40. | :03:45. | |
South Korea's market is giving back about 4%. Asian investors are very | :03:45. | :03:49. | |
concerned about what's happening in Italy, which is of course a much | :03:49. | :03:52. | |
bigger economy than Greece, which has been at the centre of this | :03:52. | :03:57. | |
crisis in Europe. Analysts say market volatility will be here to | :03:57. | :04:04. | |
stay. Markets have been very volatile over the last few weeks. | :04:04. | :04:09. | |
Also Asian investors have been divesting other economic data, | :04:09. | :04:15. | |
weaker than expected machinery orders from Japan is a problem -- | :04:15. | :04:18. | |
by jesting. China's trade figures are confirming exports from there | :04:18. | :04:26. | |
have been slowing though that -- so that is a problem. Chris Dean | :04:26. | :04:31. | |
Lagarde, head of the IMF, is still in China. -- Christine Lagarde. She | :04:31. | :04:36. | |
is trying to get support for the beleaguered eurozone economies. She | :04:36. | :04:41. | |
is holding a press conference in an hour, any big announcements? | :04:41. | :04:46. | |
don't know. Everyone in Europe is hoping she will come out and say | :04:46. | :04:50. | |
China has agreed to save Europe from this debt crisis. However | :04:50. | :04:58. | |
China has been quite reluctant to say what they are going to do. But | :04:58. | :05:02. | |
from the Chief of the IMF, the statements have been pessimistic. | :05:02. | :05:06. | |
Saying that the world economy could be heading towards a lost decade. | :05:06. | :05:11. | |
She said that Asia is not immune to what's happening in Europe. She is | :05:11. | :05:15. | |
heading to Japan, who have been buying a lot of Bonn's from Europe, | :05:15. | :05:22. | |
where she will be seeking more support. Thank you for joining us. | :05:22. | :05:26. | |
From fears about Italy now to the struggles of a country that's | :05:26. | :05:30. | |
already been bailed out. Portugal's parliament is set to debate a | :05:30. | :05:34. | |
budget for next year later which is seen by many as the severest | :05:34. | :05:40. | |
austerity package in its history. It is trying to renegotiate the | :05:40. | :05:45. | |
terms of its 17 billion dollar bail-out. On Wednesday, the head of | :05:45. | :05:50. | |
the euro group of finance ministers, he was in Lisbon and he tried to | :05:50. | :05:54. | |
reassure the Portuguese that Brussels is behind them. | :05:54. | :05:57. | |
Portuguese should not have the impression that they are totally | :05:57. | :06:04. | |
isolated in Europe and they will be left alone. There is no euro | :06:04. | :06:09. | |
without them. There will never be a euro without Portugal. Let's speak | :06:09. | :06:14. | |
to Allison Roberts, who is in Lisburn. Allison, he's doing his | :06:14. | :06:19. | |
best to reassure the Portuguese, did it work? The comments were seen | :06:19. | :06:24. | |
as helpful here. However the Portuguese are under no illusions | :06:24. | :06:28. | |
as to the degree of austerity they are facing. It was significant that | :06:28. | :06:34. | |
yesterday both the Prime Minister and John Pierre said there was no | :06:34. | :06:38. | |
attempt or no need on the part of Portugal to renegotiate the deal in | :06:38. | :06:43. | |
terms of getting more money. That is rolling back a bit from | :06:43. | :06:46. | |
government comments earlier saying they were looking to readjust and | :06:46. | :06:50. | |
now they're saying there are just technical details as a team of | :06:50. | :06:53. | |
senior officials from the European Central Bank and International | :06:53. | :06:57. | |
Monetary Fund are in Lisbon now, they are here for a couple of weeks, | :06:57. | :07:01. | |
and they are going over all the details of the programme. Apart | :07:01. | :07:05. | |
from anything else, they have to decide whether to hand over the | :07:05. | :07:10. | |
next part of the bail-out, which has already been agreed. What about | :07:10. | :07:14. | |
the next budget for next year which they will begin to debate in | :07:14. | :07:21. | |
parliament today. What is in it? The cuts are deeper than what was | :07:21. | :07:25. | |
agreed by the international lenders. In part because Portugal wants to | :07:25. | :07:32. | |
show that it is demarcating itself from Greece. It does not that | :07:32. | :07:38. | |
everybody here is talking about. The most controversial measure has | :07:38. | :07:43. | |
been the removal of holiday and Christmas pay for most public | :07:43. | :07:48. | |
sector employees and many state pensioners. That is a one-seventh | :07:48. | :07:52. | |
cut in annual income. That is deeper than many people expected. | :07:52. | :07:55. | |
Many tax rises and other spending cuts that will affect everybody | :07:55. | :08:01. | |
here. Briefly, it will be very difficult to implement? | :08:01. | :08:05. | |
government has a majority in parliament but there is resistance. | :08:05. | :08:08. | |
There will be a demonstration outside the parliament building | :08:08. | :08:13. | |
during the debate and there will be a general strike later this month. | :08:13. | :08:16. | |
Implementation will be very difficult indeed. Thank you for | :08:16. | :08:19. | |
joining us. China's feeling the effects of a weakening global | :08:19. | :08:24. | |
economy according to their latest figures. Export growth was the | :08:24. | :08:28. | |
weakest in eight months in October and close to the levels seen in | :08:28. | :08:33. | |
2009 when exports actually shrank. Exports surged suggesting that the | :08:33. | :08:37. | |
country's attempts to rebalance the economy towards domestic demand are | :08:37. | :08:42. | |
working. The Bank of England will wrap up its monthly meeting later | :08:42. | :08:48. | |
and it is widely expected to leave interest rates at 0.5%. Last month | :08:48. | :08:53. | |
the bank expanded its �200 billion programme of quantitative easing, | :08:53. | :09:00. | |
many economists think that the banks will have to pump more money | :09:00. | :09:04. | |
into the UK economy soon. In a few hours James Murdoch will answer | :09:04. | :09:08. | |
questions on phone hacking for a second time in front of Parliament. | :09:08. | :09:11. | |
It will be the first time he will be questioned about widespread | :09:12. | :09:19. | |
surveillance of public figures by the News of the World. In Asia, as | :09:19. | :09:24. | |
was said, a very tricky session. The news about Chinese exports been | :09:24. | :09:30. | |
lower did not help either. Also Japanese manufacturing orders are | :09:30. | :09:34. | |
lower as well. Or factory orders I should say. The Japanese production | :09:34. | :09:39. | |
line is slowing as well because of the impact of what is happening in | :09:39. | :09:44. |