08/03/2012 World Business Report


08/03/2012

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Those are the latest headlines. It is not time for the latest

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Hello and welcome it. The headlines: Greece has until tonight

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to clinch a deal with its private lenders then secure a new bail-out.

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Reports indicated may have enough. Japan records its biggest-ever

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deficit in January. GDP data reveals the picture was not as bad

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will stop a profitable year for Airbus owner EADS as it outsells

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arch-rival Boeing. Could a big merger in the west be

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next? It is deadline day for Greece in

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its bid to reach the deal with private lenders and claim a

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membership of the euro. Investors have until 10pm to agree to swap

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their Greek government bonds for any debts that are worth 70% less.

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The deal is a condition for the second bail-out. If it fails there

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will be no more money from Europe and the IMF and Athens will default.

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So far, the indications are they may have done it. Greece needs

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three-quarters of its bondholders to except the deal for voluntary

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participation. If it does not, it will require at least two-thirds of

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bond holders to take part so that Athens can use its so-called

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collective action caused and forced the rest to agree. So far, holders

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of at least 60% of the bonds say they will take part. Patrick

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Armstrong is one of the bond holders who is refusing to accept.

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What are you holding at the moment? Are a very small weight in the much

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20th bombs. We have a fractional percentage in our part for years.

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We bought end-August bond that immature. We took a position where

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we shorted the banks. We benefited from falling back prices. If Greece

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defaulted, banks would suffer. We have lost money on the next bombs,

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but we made good capital on a position where we benefited from

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falling back prices. You cuts that both sides. You were to benefit

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from the Greek bonds if it was OK, but if it was not, you had a

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position so you would gain if the banks suffered. You're not willing

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to participate in this deal, why not? It is not a fair deal. All

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owners are being treated the same. The people who voluntary

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participate will get a haircut on their holdings. Banks have been

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Crowhurst to put his bait. The banks will be voluntarily

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volunteering in Greece, but they will be getting 130 billion through

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the back door. There is a minuscule chance that there is a high

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Patricia Rayson rate and Greece will not bother. -- higher

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participation rate. When you took out these bombs last year, you knew

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Greece was in trouble. You are taking a position to benefit. Some

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would look at UN say, you're a player in this market. You have

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made the situation worse. You have caused the market even more acute.

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Greek people have had to swallow all these horrible changes because

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of the market. We were supporting Greece by applying Greek bombs.

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she were shorting European banks. You could say we made it worse by

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shorting the banks, but we were supporting Greece. It was a mutual

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trade. You have explained why you do not want to participate. It is

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an unfair deal. But you will be forced anyway probably. Inevitably.

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Why not vote in favour in the first place? The clause will make it a

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default. By triggering the collective action causes, it will

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cause the default. It is calling a spade a spade. There is a small

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chance that they do not trigger the reflection active -- reflective

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action caused. So there is a high up the dish a patient rate, they

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may not bother. If they don't get to 66%, I don't think it is

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possible. People are looking on from the outside en scene, surely

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they are better raft to participate and agree. This deal has to be

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better than Greece completely defaulting. Greece defaulting in a

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disorderly banner would be bad news for markets. The IMF would come in

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and pump liquidity into the system. I don't think it would be as bad as

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people are worried about. Banks can prepare for this. And don't think

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it would be that bad. We will have to leave it there. Thank you for

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coming onto the programme. It is a story we will be across for

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you throw out the date here on the BBC.

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One year since the devastating earthquake end tsunami in Japan.

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There has been some encouraging news about how the Japanese economy

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is doing. Tell us more about Japan. Two contrasting features on the

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state of the Japanese economy. You mentioned the GDP which is at --

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encouraging. But the country look its biggest-ever deficit. Exports

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continue to fall and rising fuel costs continue to hurt. The finance

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minister revealed that the broadest measure of trade gave the first

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native figure of January 2009. But the GDP data reveals the picture

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was not as bad as feared. Fresh data showed the economy shrank by

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just 0.2% last year and that is a narrower contraction compared to

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the first reading. Capital spending is also rising.

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Good to hear that things are looking better. We will look at

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some corporate stories. EADS, the parent company of Airbus, is

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releasing its you results shortly and they are expected to be the

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best for many years. They beat bowling in the battle for passenger

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jet orders last year. -- bowling. Our correspondent has more.

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He is leaving EADS in the best shape the company has ever been in.

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Airbus won orders for for 200 aircraft last year. Twice as many

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as the American rival Boeing. When he took over EADS in 2006, the

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company had multiple problems. Tensions between the car won't us.

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Insider-trading scandals. Delays in the development. The new chief

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executive will be the current boss of Airbus. He faces the immediate

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task of dealing with a safety scare over A-380s. There was a recent

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engine fire. His successor is encouraged -- inheriting a good

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product line. He has to be able to deliver it. End to quality, which

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is the key issue. Bowling found problems with that. Airbus has

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before. As well as the civilian aircraft, EADS have other branches.

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Helicopters, military planes. It is a strategic decision to make. Will

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they slimmed-down their operations to focus on civilian aircraft, or

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will they use some of the cash pile to make further acquisitions? There

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is a lot of talk about EADS penetrating further into the

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American market by merging with one of the defence manufacturers.

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aircraft a partly born in the UK, that -- in the US. A bid defence

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company with their partners in a military version of the Airbus.

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They finally did not sell it to the American forces. That is the sort

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of company that they could possibly by. This would bring them on to

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Boeing's home turf. It can try and beat it in sales of the next

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generation of fuel-efficient planes. It will also have to fend off

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increasing competition from the likes of Chinese and Russian

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airliners. The markets in Asia are having a

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good session today. Depend is certainly having a good state on

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