02/04/2012 World Business Report

Now the big question for eurozone leaders - where are the jobs?

Figures are out, and it is time for the latest financial news with

World Business Report. A warm welcome to World Business

Report. The headlines: A jobless recovery, fresh data could show

more Europeans are out of work. Chinese factory orders growth at

their fastest pace for an idea. Here in China, Italy's prime

minister comes with his hat in his hand.

The key to recovery and future economic growth in Europe remains

its ability to create jobs. Later today we will get the latest data

on unemployment in the eurozone. In countries like Spain, Portugal and

Greece, as many as one in five are out of work. There are governments

hope that changes to work practices will help make it more attractive

for companies to hire staff. Many traditional industries will need to

invest heavily in new technology. Our correspondent has been to

Portugal. The biggest earners around here it

used to be companies making textiles and footwear. Thanks to

Europe's low wages, that is. The companies were undercut, first by

Morocco and then by the Far East. When two stayed jobs go, only one

person has taken on, so there is no sign at all, only unemployment.

need more training, not only a hard skills, but on soft skills -

teamwork, communication, project management. That is what we need

for this country to succeed. At the end of the day we would need to

become more competitive. To become more competitive you need better

and more well-trained people. can we find hope? Some way forward?

In this case, it is a long way from a country's population centres in

Portugal's interior. Here, one firm is showing the way. Let's go inside.

This firm has managed to find 10 million euros to invest in hi-tech

gone and machines for its 250 workers, supplying international

brands. It constantly reinvents how it works. Up Europe is lazy.

sorry to say that, but I think it is lazy. (INAUDIBLE) this cannot go

on. We have to work more. Sometimes people get addicted to working and

they have difficulties changing that. We are here to try, every

time, to change a little bit. Sometimes we fail. Of working

patterns are hard to change in southern Europe. The area needs

more firms with professional management able to pick out the

best workers willing to roll up their sleeves and create wealth for

themselves. A former senior official at the

European Central Bank is saying that the risk of problems in

Portugal, Spain and other countries, spreading to the rest of the

eurozone have been overstated. European finance ministers agreed

to use their bail-out fund to create a file all should the

country's failed to honour their debts -- firewall. However, it has

been said that foreign money at the problem is not the solution. Now,

with the reform programmes under way, being implemented in Ireland,

Portugal, a new political approach in Italy, the progress made so far

in Spain - from this point of view, contagion is limited. It is limited.

That is the key point.... This is not the issue, this is of secondary

importance. What is important is the structural reform in these

countries. Let's move our focus to China and some better-than-expected

news in the world's second-largest economy. Factory orders rose at

their largest pace for a year in March. This suggests a recovery in

overseas demand for Chinese goods. Leaders gathered in eastern China

for an annual forum, they will be focused on a range of economic

issues. Let's go live. Nice to see you, Juliana. Let's start with

Mario Monty. What -- what has he been up to?

He is here to drum up business for the European Union. Not only Italy

- he took the time to meet China's senior leaders. He was pressing

them to eventually give some money for an as yet unfunded stability

fund, which we believe is something that the International Monetary

Fund is working on. For its part, china has said that it supports

Europe but it is shying away from putting down Monetary pledges. I

spoke to a leading banker, who said that China's position is that they

may give money at some point, but that the EU has to give money first.

After all, the EU is much richer than China.

Tell us-mac about China -- tell us about China.

On Sunday we had the Purchasing Managers' Index up for March. It

was much stronger than expected. It was the strongest growth in the

last year. That suggests that manufacturing is bouncing back.

Asia's stock markets have reacted, doing very well on the news of that.

Other people I have talked to here in China say that manufacturing may

be doing all right, trade may be doing all right, but internally,

the market is slowing. There are a lot of issues to talk about you.

Thank you very much for bringing us up-to-date.

Let's talk about some other business stories. More than 3,000

jobs have been safeguarded a video games retailer, Game. It has been

bought by an investment firm that specialises in turning around

struggling retailers. It closed down nearly half of its stores last

week and laid off 2000 staff after going into administration. This

weekend's deal should keep most of the remaining 333 shops on the UK

high-street open. At a million public sector workers

in Germany will get a 6.3% pay rise. The deal will be spread over two

years instead of one. It is slightly below the figures demanded

by trade unions. Government services have been disrupted by a

series of strikes by staff in recent weeks. The agreement reduces

the threat of all-out strike. Japan says... Dr Kim is touring to

garner support for his nomination. Africa and Asia are pushing or the

next World Chief to come from a developing nation.

There has been a big takeover in Asia's banking sector. To tell us-

-- to tell us about that, here is Sharon.

It involves South East Asia's biggest bank, which says it is in a

5 billion dollar deal to buy up a stake in a prominent banker in

Indonesia. This is part of a plan to expand further. Indonesia is

South East Asia's largest economy. This will make the B S the fifth

largest lender in Indonesia. It is planning to acquire a 67% stake,

which was held by a Singaporean sovereign welfare fund, which is

also a major shareholder in DBS. Singapore's economy expanded by

about 6.5% in 2011. The banking sector remains on -- under-served

to.... The bank has about 3,000 branches and offices catering to a

customer base of almost 6 million people.

Another big deal going down in a share.