12/12/2011 World Business Report

country. -- Syrian. Those are the latest headlines. We have the

latest financial news now. This is World Business Report. The

headlines: Financial markets reacted positively to last week's

European summit. There are more outstanding questions than ever. On

the face of it the problems have not gone away. What is it like for

the young and jobless in Libya? The economic issues remain the same.

China starts a three-day policy meeting to set up objectives for

the new year. The controversy over last Friday's EU summit continues

in Britain. It used its veto to block changes to the Lisbon Treaty.

David Cameron says the changes were not in the UK's interest. Analysts

will be looking to see how the financial markets react when they

kick off business in a few hours' time. Good morning. Give Friday's

rally was a relief, what does that say for the rest of the week?

are a couple of big points to sort out. We need to see that the crisis

is being tackled in a way that can give confidence. Friday's rally was

a positive step, better a rally than further falls, but we have to

see whether banks will lend money. We have not arrest contagion from

our vocabulary, Italian borrowing costs are still high, it does

appear that the summit has dealt with the future but not the present.

Italian bond yields have come down substantially over the past few

weeks. That is due to expectation. An increased sense that Europe is

starting to get to grips with this. You are right, some of the

fundamental issues have not been addressed yet. We have no

indication the European Central Bank will be willing to step up,

there has been no progress on the euro bonds. A pessimist will say

that potentially we could go back to square one, all of these ideas

have been bashed around, but they have to go to Parliament. Britain

may not be standing on the sidelines? That is right. The

agreement has to be ratified by national parliaments. We need to

see the detail on how the dissident mechanisms will be implemented. --

is discipline. The devil is in the detail. We have to leave it there.

We go to China, Hu Jintao has opened a three-day meeting to set

up -- set out the economic objectives for 2012. What can we

expect? We can expect quite a lot. The meeting itself is called the

economic work meeting. It is an annual closed-door meeting in

Beijing. We will not know until after they had decided on their

policies. It will decide the policies for the year ahead.

China's leaders will be making a decision against the backdrop of

turmoil in Europe and the US. These are key export markets. The meeting

will end on Wednesday. That is according to the government's

website. One way they we'll try and stimulate growth will be to try and

increase imports. -- will try. They will mark China's tenth anniversary

into the World Trade Organisation. He says imports will exceed eight

trillion dollars in the next five years. Last year China bought 1.4

trillion dollars from overseas. Exports grew by 14% while imports

grew by 22% last November. There is an imbalance. Europe, China's

largest trading partner has slowed. Thank you. The Middle East and

North Africa have the highest rates of youth unemployment in the world.

The combination of poverty and jobless youth is a breeding ground

for political violence. We are going to focus on the young and

jobless. We are taking a snapshot of how it is affecting people

around the world. We report from Tripoli. This 23-year-old used to

be a student, now he has got a new job, protecting the square with a

rifle beside him. I did not know anything about weapons before the

revolution. I was just studying and going to university. During the

revolution things changed. We started standing at checkpoints. We

became organised. We were able to free the country. These young

people wanted to see change and better opportunities. Gaddafi made

no longer be in power, but the economic issues are the same.

Before the Arab Spring, 25% of people were unemployed in Libya. In

Tunisia one in three young people were out of a job. The populations

here are young. Around two in three people are under the age of 30,

they need jobs. The economies cannot give a job to everyone who

needs one. In the absence of an elected government, it was the

young people who tried to address that. Many of these young people

are ex fighters, they need to reintegrate into society. We have a

fairly educated population. There is a significant number of people

who have degrees but are unemployed. These skills can be utilised in the

rebuilding of Libya. The challenge for the new leaders will be to meet

the expectations of their young populations and convince them to

lay down their weapons. We will have more from how young and

jobless series. That is happening all week. We have plenty more

material online. Let's take a look at some of the other stories. The

FSA will be critical of its own role in the events surrounding the

collapse of the Royal Bank of Scotland three years ago. The

report is due out in 30 minutes time. The supervision was deficient.

The regulator will say that the failure of RBS in 2008 was a result

of decisions made by the bank management. RBS had to be bailed

out by taxpayers. Julia Gillard has reshuffled her Cabinet, focusing on