31/05/2012 World Business Report

later. Welcome to the programme. Here are

the headlines: Scramble for safety. Demand for UK, US debts soar as

eurozone fears mount. A Asian stock market's retreat as

investors feared the Greek debt crisis will spill over into Italy

and Spain. India may pose the biggest growth

in three years as the global Extreme times call for extreme

actions. That is the feeling among many in the markets who are pouring

money into safe havens. The banking crisis in Spain is far from

resolved. Eight disappointing debt If you invest in the US economy for

ten years, your return is a near one. 62%. The interest rate on

German and UK debt will plunge as people look for places to put their

money where they will believe they will get it back. The euro fell

almost 4% against the dollar to its lowest level in two years. Share

markets were falling heavily and global losses are being felt.

Talk us through what is happening way you are. Right now, the fear

among Asian investors is contagion in the eurozone. That is leading to

this major sell off this Thursday in the region. The sentiment is the

Greek debt crisis is engulfing bigger economies like Spain and

Italy. China is not helping. Beijing said earlier this week they

would be no stiffness package similar to the one in 2008 after

the global financial crisis. -- Many are questioning what steps

Beijing will take next as Europe's Electronics manufacturers and

leading the list as Hong Kong's index Arnaud by 1.5%. Energy shares

are falling. -- are Low Wood. us talk to Justin. We would put

some perspective on all of this. Some are saying we are in perilous

times. What is your perspective? Are people we -- over reacting?

This is not an economic crisis but a lack of credit for political

leadership and policy. -- credible. It has been left to the last minute.

People are saying, I do not trust what is going on. We are dealing

with symptoms. Spain is a symptom. So is Italy. The cause is the

dissident structure in the single currency. Get that sorted out and

everything else can be put into perspective. This might... If we

enhance this, we can get a progress. In terms of where the money was

going, he interest rates on UK debt and on the US as well, Germany is

seen growth in the economy. Their economy is relatively strong. Debt

levels are high in the UK and US. Explained the thinking. As the

world's largest economy, the US is seen as a safe haven. Britain is a

little perverse. To call it a safe haven is going too far. Its debt is

managed by an agency of the Treasury. Britain does not have a

debt crisis. America is 5.5 using People are not being rewarded,

whether it is German debt or British dead. Let us squeeze in

some other business news. Ireland is holding a referendum on

whether to ratify the new fiscal pact which imposes tighter rules on

government spending. This leads the backing of 12 states to come into

effect. A no vote from Ireland will not scuffle it but will increase

tensions on the market. Graff Diamonds shelved its billion

dollars flotation on the Hong Kong stock exchange, citing adverse

market conditions. The struggling travel agent was

forced to ask lenders in extra funding, raising fears it was close

India is releasing growth figures. Growth is expected to come in at 6%.

It sounds healthy by European standards. It will be the weakest

in India for three years. Economic challenges have been mounting not

just from overseas but many from The hard pushed to keep India's

growth machine spinning. This factory produces 16 million square

metres of bed linen every year which it sells to the US and Europe.

The currency should help boost its sales overseas but the owner says

the company has not been benefiting because like most firms, production

costs have increased. Inflation impacts us. He labour costs have

increased. The transportation and fuel costs have gone higher. Our

production costs have gone up because of these factors. Sales to

the US have been rebuffed. The company has had no new orders from

Europe in the last six months. -- robust. This sport is one of

India's gateways to the world. -- port. Most companies are facing

hurdles on a number of fronts. A global slowdown that is reducing

demand from the outside and on the inside, high inflation coupled with

a weak crop -- currency, is making everything more expensive. The

trade gap is widening. There are concerns the government is spending

more than it can afford. High interest rates and a lack of key

reforms have dampened the economic climate. The pace of growth Bay be

the envy of countries elsewhere, that many argue that India is not

matching up to its potential. Europe's top football clubs are

being water they need to keep a lid This has not changed, this problem

of players' wages. Football has been having fantastic revenue

growth. Players share in that the Mac. But it has gone too far. The

club needs to take action to restore balance. UEFA is looking to

take that action. The objective is to help clubs to help themselves

and readjust that balance. How does that work? There is a break even

requirement. Clubs will be required to get close to, or break even, in

terms of results. They can invest in a youth development. As a

business, they have to break even. They cannot rely on a white knight

to rescue them all the time. Yes. The benefactor supplying them

will... Will that be out of control? It is a positive