07/12/2011 World Business Report

occasion. Those are the latest headlines from BBC News. We now

have the latest financial news. headlines: Looking for the eurozone

bazooka, reports that Europe is discussing a way to govern is bail-

out fund. The electrical company that had to pay investors to take a

company off its hands. A comeback for Australia's economy, will it

continue? Much has been made of the importance of this week's eurozone

summit. The Financial Times is reporting negotiators are

discussing the doubling the firepower of the eurozone bail-out

fund by creating two separate systems. It would come in

conjunction with the of -- rewriting the EU treaties. Timothy

Geithner continues his tour of Europe, he will have meetings with

French and Spanish leaders. He has emphasised how important it is for

a fast solution to the debt crisis. I am here to emphasise how

important it is that Germany and France succeed alongside the other

nations in Europe in building a stronger eurozone. Greece have

passed next year's austerity budget. It was part of a condition of

receiving a second bail-out. The Budget is designed to slash the

deficit and restore creditor confidence. After the vote one

politician said it was difficult but necessary. We proved tonight

that we are responsible enough to face our problems, but we are also

proving that the solution is not only a mathematical one. We must

preserve our society. We must avoid a solution to become unbearable to

society. Nice to have you with us. Everyone is talking about this debt

crisis, explained the idea of a three-pronged attack involving the

bail-out fund, the IMF possibly involved? This is a discussion on

the monetary plan as well as the fiscal plan. The Madrid plan, at

the moment we have the European with 540 bilth 540 bil will be

replaced in 2013 with the European stability mechanism. That would be

500 billion. What they are now ta tat, it may come in next

year rather than 2013. At the same time you can look at what other

funding there might be the start the IMF and European Central Bank

could be involved. -- might be. you feel that could be a credible

answer that would lead to an end to the crisis? I think this Friday we

have the leaders looking at both

proper solution on both elements. Fiscal integration has always been

necessary. You have integration of all of disintegration. --

integration or disintegration. is being turned the big bazooka. We

will see what comes out of this meeting tomorrow. What about the

political side? We have heard from the UK Prime Minister highlighting

his concerns, that is the issue, isn't it? Her -- politically they

have to get this through? Yes, David Cameron has said this should

solve the problem and not damage Britain's interest at the same time.

If there is some solution that allows Britain an exemption, if it

allows London not to be hit by the rules, the question has to be, well

that get through the parliament? Although we see something plant

that looks like it will work, we have a few months to see if it can

get three in each country? -- through in each country. Thank you

very much. You can read more on Australia. The economy is proving

to be very resilient. We go to Singapore for the details. What is

the news to come out of Australia Growth was aowth was ang 2.5%. They

are the one that Down Under. It has rebounded confidently from the

contraction Wysall between January and March. -- contraction we saw.

Invests -- job creation has been strong. Businesses have been

investing again. Australia is one of the strongest economies in the

developed world. Australia owes much of that growth to Asian

countries, particularly China. Australia's Central Bank has

borrowing. Very quickly, before you go, tell us about India, they have

made a decision about the retail sector? That is right. A widely

anticipated decision after two weeks of protests from opposition

parties. Companies like Wal-Mart may be able to own 60 -- 51% of

stakes in local supermarkets. you. Europe's third largest

electrical retailer or will expect to unveil losses of $14 million in

around one hour. It will confirm the sale of its UK chain. It is

paying a private equity group millions of dollars to take it off

its hands. The coffers are as empty as the Isles, this retail chain has

lost $34 million. Shoppers that can afford a televisions and other

electrical items are migrating to the internet. They are getting rid

of a brand that has become nothing but a burden. With times tough on

the high street, why on earth would anyone want to buy a business like

this? The only answer is that they are paying off another company to

take it off their hands. They get a cheque for $78 million, it does not

have to take on the pension fund either. For 1.5 years it could

close 250 stores. They have only got a guarantee from the buyer that

they will keep the stores open for 18 months. That is a very short

period. That shows you some of the troubles that they have. They will

try and expand in Spain, Italy and Turkey. Unlike the British arm of

the business, it is still profitable. But it faces more

challenging times. Challenging times, that is the theme at the

moment. Let's have a look at the markets in Asia. This is in