11/11/2011 World Business Report

on protesters. Those are the latest headlines from BBC News. Time for

World Business Report. This is World Business Report. Signs of

progress on Italy and Greece. Asia shares rebound after a turbulent

week on brighter prospects in the US. India's former telecoms

minister goes on trial in the country's largest ever corruption

scandal. Markets have been staging a modest recovery after Wednesday's

massive losses. The naming of the ECB official as Greece's interim

leader, and Italy's success of selling 5 billion euros of bonds

helped markets. Germany has denied wanting to redesign the eurozone.

The finance minister has been in Lisbon discussing Portugal's bail-

out. TRANSLATION: The euro is a solid group which is open to those

who meet the criteria for joining. I do not want the euro to be

subdivided into a virtuous northern region and a southern region. We

will stick together. There is no Europe without Portugal, there is

no euro without Portugal. You should not let yourself be taken in

by stupid suggestions. Are they stupid suggestions that the

eurozone could split in two? This would create significant a mile. --

turmoil. It would be a very big gamble for uncertain gains. The

other option, the pain said the bank can start printing money and

use that money to buy up Italian bonds. -- European Central Bank.

This would give some breathing space. Italy does not have the same

problems as Greece. If the ECB intervenes and makes it clear to

investors, that could bring some relief on bond yields. You hear the

expression breathing space, it is only breathing space. Italy and

other countries have to tackle their debts. That is right. They

need to do their job. The problem is, the reforms we are talking

about, making labour markets more flexible, the ECB cannot step in to

other countries... Meanwhile, there is this controversy over France.

Standard and Poor's is downgrading the debt on France. It is a

sensitive issue. No country at the moment can be complacent. We have

seen quite significant measures to address this. It is probably next

on the list of countries to watch. Thank you. Let's see how all of

this is affecting markets in Asia. There is a little bit of relief on

the markets, isn't there? There is a tad. We have seen a massive sell-

off this year. Wall Street has been rising. Asian markets have followed

in line. A bit of relief from the sale of Italian bonds that went

better than expected. Asian stocks are rebounding from their largest

decline in seven weeks that we saw yesterday. The Nikkei is up

marginally. There is a combination of factors, US jobless claims

falling to their lowest level in seven months. Consumer confidence

climbing for a third month. Italy will vote on a debt reduction

measure today. You have got new leaders for Greece and Italy.

Japan's yen rose to its strongest level against the dollar. Thank you.

There could be evidence in the next few hours that Spain is drifting

back towards recession. Official GDP numbers could confirm growth

has ground to a halt after a rise of just 0.2% in the previous three

months. Unemployment is at 21%. 5 million people are out of work.

Spain's economy will return to recession with in two months. I

answer is expected to report a plunge in profits later today. --

alliance. Profits have fallen more than 50% in the third quarter.

Europe's number three insurer will revealed the damage done by the

crisis when it publishes its results. India's former telecoms

minister goes on trial today in a corruption scandal. He is one of 17

officials in the dock over alleged bribery in the sale of mobile-phone

licences in 2008. The affair has rocked the Prime Minister's

administration. It has dented confidence in one of the world's

fastest-growing telecoms markets. Political royalty behind bars in

connection with the country's largest corruption scandal. The

daughter of a powerful politician has been charged with criminal

breach of trust for allegedly selling mobile phone licences in a

preferential manner. They deny wrong doing. They are not the only

ones. There are 15 others who are recused. -- accused. This scam has

cost the state $30 billion in lost revenue. The telecom sector in

India is one of the fastest-growing in the world. Over the last year it

has been rocked by the scandal. Despite that, the mobile phone

market is robust with 865 million subscribers. Because of lack of

clarity and a good policy on issues of pricing. I think there is a

whole lot of uncertainty. This scam has added to the uncertainty.

However this legal experts fierce, the case has highlighted corruption

in the country. If you compare it with all the previous scandals, if

you look at the magnitude of the personalities involved, it is a

landmark judgement. I am sure the world's business community is

watching what is going on. There is a lot at stake. All the accused

pleaded not guilty. The court has said the charges levelled against

them are of a very serious nature. The government hopes this sector

will once again shine bright free of corruption.

With the relief concerning some kind of decision on political