22/05/2012 World Business Report


22/05/2012

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Those are the latest headlines. Now for the latest financial news in

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Hello and welcome to World Business Report.

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The crisis of youth unemployment. Some 75 million people under 24 are

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now out of work, warns the UN, with Europe among the hardest hit.

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Qantas announcer's restructuring plans to rescue the company from a

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more losses. Signs of life in the US housing

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market. But it will take years to rebuild the damage from America's

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real estate crash. Turmoil in the eurozone is helping

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push youth unemployment to crisis levels, with many young people

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giving up hope of ever finding work. That is according to the UN agency

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in charge of workers' rights, the International Labour Organisation.

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In a report out today, the ILO says the number of young people aged 15-

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24 without jobs now stands at almost 75 million worldwide. That

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figure has risen by 4 million since 2007. Some of the highest rates of

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unemployment are in the European Union, where one in five under 24's

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are looking for jobs. In some countries the figure is much higher.

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The ILO warns many have now become so discouraged they have given up

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looking for work. Others are trapped in low paid, low skilled

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temporary jobs. It sees some young people becoming increasingly

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detached from society and says they risk becoming unemployable.

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We will be talking to the altar of that report later. Moving on to

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another business story, it is six years since the US housing market

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collapsed. Is the market starting to stabilise? They should be

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figures released today. Recent data paints a mixed picture. On the one

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hand, the US builders began work on more homes last month. On the other,

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many Americans still owe more on their mortgages than the actual

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worth of their home. Our correspondent visited one town in

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Connecticut that is still struggling.

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How spices in the US are still falling. Not only in familiar

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trouble spots but also here in Connecticut. -- house prices. This

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area has been popular with middle class families for generations. Now,

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one seller is having a difficult time convincing a new generation to

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move in. This woman is having trouble selling her parent's house.

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She has lowers the price from 159,000, 7%. The work she has put

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into fixing the place has not paid off. It is very hard to find one

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buyer that once it. As much as I would love to sell it, I cannot

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give it away for free. For Terry, the experience has been

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heartbreaking. Not only is this where she grew up, it is also the

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place where her immigrant parents called their palace. People are not

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buying. They are not in the nude. They are not feel insecure enough.

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-- in the mood. Houses are affordable but they have not got

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the message. On the poverty level, we have super for every property.

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Not everybody has been scared off. Some are trying to cash in on the

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decline in prices. This man invest in residential properties that are

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going cheap. With the amount of product out there, we believe there

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is something we can do. Right now we are coming into what was the

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58th unit we purchased. He showed me the renovations they

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did. He hopes to break even in the next year. The US housing market

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will take a lot longer to fix. Qantas has announced a radical

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restructuring plans. It has had a very tough time. Will this be

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enough to turn things around? We will have to wait and see.

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Essentially, they have announced the fact that they are splitting

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their international and domestic divisions. They are looking to

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restructure its business in a major way. The firm's international

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operations have been heard by many different issues, including strikes.

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The split is aimed at trying to cut costs. Streamline efforts to make

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its international operations more probable. The division has been

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making a loss because of higher fuel prices, falling demand as well,

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and it all follows a move yesterday when the airline cut some 500 jobs

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in its maintenance and engineering division. The split is part of a

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five-year plan announced last year, according to the chief executive

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Alan Joyce. Because the carrier's international operations have

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witnessed a downturn in the last few years, Qantas has announced its

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withdrawal from a whole series of different international routes.

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This includes the Singapore - Mumbai Road, Auckland-Los Angeles.

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But it's domestic operations continued to grow because it enjoys

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a big market share at home in Australia. According to airline

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analysts, the two businesses have had very separate parts in the last

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few years. They are contrasting fortunes. -- calfs. The

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international operations will need to continue on attracting new

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customers. -- paths. They need to fly on the most in-demand and

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profitable routes to make it profitable. The airline also has to

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maintain a dominant position, as well as the right potential

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competition from low-cost carriers. But they were trading today at 1%

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higher. Of thank you.

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Lots of changes going on at Qantas. Other business stories. Many are

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asking how shares of Facebook performed today. They closed 11%

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lower, leaving many investors who poured into the biggest ever

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internet flotation already nursing losses on the $38 they paid on

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Friday. Some analysts have questioned the $104 billion

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evaluation - more than 100 times last year's earnings.

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The former Goldman Sachs director has begun in a trial. He is accused

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of giving confidential information to a hedge fund tycoon, who is

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serving 11 years in jail for insider trading. It is part of a

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crackdown on Wall Street corruption that has seen more than 20 exhibits

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prosecuted. A Singapore's Stock Exchange has given way to Formula

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One equity firms. They will hope to tap into interest

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in the sport. They have been hosting races there since 2008 in a

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five-year deal. Our Leader story today is the news

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that the International Labour Organisation has released a report

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focusing on youth unemployment. It warned it could go... It is at 75

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million people out of work worldwide. Unfortunately, we are

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struggling to connect with the author of that report who is in

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Geneva. I just want to fill you in on some of the issues in the report

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that they said it would help solve this problem of youth unemployment.

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They are talking about the Government's focusing on job-

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creation and enabling tax breaks for companies that employ down

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people. Also they are looking at policy-making for getting young

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people in -- trained in skilled areas. Private sector investment,

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if that were to pick up, because governments enabling tax breaks for

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companies that employ the gang would try to help buck the trend.

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Some of the ideas in that report. I do apologise, we were unable to

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talk to the author. -- employ the youth. We are seeing gains again

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today. Up 1% in Asia. Many exporters doing well. Metal prices

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