15/05/2012 World Business Report

April. Those are the latest headlines from BBC World News. Now

for the latest money news with World Business Report. Hello and

welcome to World Business Report. The headlines: As politicians

debate growth versus austerity, today's numbers should confirm the

eurozone is back in recession. Asian stock markets are jittery. A

slowdown in China's economic growth. Struggling to survive - we look at

how one company is weathering the crisis. It's another critical day

for eurozone economies as fears mount over the impact of a

disorderly Greek exit from the single currency. Today finance

ministers from across the European Union meet in Brussels. Also

France's new President, Francois Hollande, will have his first

meeting in Berlin with his German counterpart Angela Merkel following

his inauguration in Paris. As these key players meet to discuss the

crisis the political stalemate in Greece remains unresolved. Talks

will resume in Athens today. If they fail to come up with a

solution before Thursday another election is likely. Also in two

hours time the latest growth figures are expected to show the

eurozone has slipped back into recession. Economists predicting a

contraction of 0.2% in the first quarter of this year. Late

yesterday the ratings agency Moody's cut the credit ratings for

26 Italian banks citing their vulnerability to more trouble in

the eurozone. The banks include some of Italy's biggest lenders,

Unicredit and Intesa San Paolo. Needless to say this is causing

investors to sell the euro, the interest rate on Spanish and

Italian debt has climbed and shares are falling. We'll have the latest

on the markets from Rico in a moment. But first in Brussels is

Sony Kapoor, managing director at Re-Define. It has been an

interesting 48 hours. Tell us what you think it EU finance ministers

will be tackling when they meet today in Brussels. They have to be

looking at stopping the speculation that has been taking hold and

causing market panic. The fact of the matter is, there is no

preparation of any substantial kind for a Greek exit. It is not on the

cards for the foreseeable future. Nobody in the eurozone wants it to

fall out. The second thing they will discuss, how to arrest the

downward spiral that the eurozone is in. The Spanish banks, the

downgrade of the Italian banks, the might be entering into recession.

All of this has got to be tackled through something like a growth

pact. Efforts to tackle tax avoidance and tax evasion. So the

cuts do not have to be so bad. Very importantly, defining a road map as

to where the eurozone is headed. At the moment nobody knows. It is such

a big agenda, the market speculation is very important. How

do they manage that? In the markets many traders say they are not

looking at if it may exit, but when it will exit. How do they stop that

speculative action from going on? We have to stop it -- extremely

irresponsible game of chicken that is under way between politicians in

Greece and European leaders. European leaders want to send a

message to the negotiating Greece politicians that negotiating the

terms of the bail-out is not an option. If things were to come to

that, Greece might as well be pushed out of the eurozone.

Everyone else is listening as well. What needs to happen is that this

needs to happen behind closed doors. There needs to be some loosening of

the Greek bail-out. There needs to be a recognition in Greece that its

future, at least for the disabled few years lies in the eurozone. Any

exit would cause human damage to Greece and the rest of the eurozone.

It is political, social, economic, the costs are big. Thank you. Let's

take you to the Asian markets. Another very tricky day, not least

because of the news about the eurozone, but also worries about

China? Absolutely. The issue of Greece potentially leaving the is

in the minds of many investors. A slowdown in China's economic growth

is worrying them a lot. Both factors impacting Asian at

Shearer's. -- Asian shares. Regional borrowers are very

concerned. Europe is Asia's second largest exporting partner. Much of

Asia's trade is financed by Europe's banks. They want to

concentrate efforts at which could mean investments in two Asian

equities. Worries about China's economy growing slower than

previously thought, but when you speak with analysts they say there

is nothing to worry about. They say over time it will prove favourable.

At the moment it is China and the having an -- the eurozone having an

impact on the markets. JP Morgan Chase has confirmed its chief

investment officer who presided over a $2 billion trading loss will

leave the company. Ina Drew, one of the highest-ranking women on Wall

Street, is retiring after more than 30 years with the company. US

President Barack Obama says the fact that JPMorgan Chase, one of

the country's best managed banks, could lose so much money in

derivatives trades, underlines the need for tighter banking regulation.

US fragrance firm Coty is withdrawing its $10.7 billion

takeover bid for Avon Products, saying the world's largest

cosmetics direct seller had missed its deadline to start talks. Coty

had first made a public offer for Avon in April, but later told that

company's board that it had until the close of business on Monday to

start talks. Back to our top story. Growth figures for the eurozone are

expected to show the single currency area is actually going

into reverse. Our Europe business correspondent went to visit one

company trying to survive. These are gifts designed in west London,

one third of these products are sold on to wholesale partners in

continental Europe. They say Brussels is right to say that

economic conditions are not consistently bad but all around

they are worsening. This company seems to have succeeded rather than

failed in continental Europe because of its concentration on

custom design of low-cost items. It has still got plenty of customers

in Greece, Spain and Italy. If there is a concern, it is about the

availability of credit in those countries. Just as customers select

what they buy carefully, suppliers have to be increasingly vigilant to

ensure the credit is still good when they get paid. There may be

factors beyond their control. We have to be firm but fair with them.

Keep the credit under control. We need to do internal risk management.

The most successful areas are in the Scandinavian countries. Having

said that, we do well in Spain, Italy and to a lesser extent,

Greece. The whole of Europe is a market for us. There is strength in

the northern area at the moment. Businesses cannot wait for a