07/06/2012 World Business Report

Russian hacker forum. Now for the latest financial news.

Welcome to World Business Report. Ted mac are a test of investor

sentiment, Spain looks to raise money on the markets as reports

well that Europe is considering financial aid for its banks. --

reports swell. The US economy is slowing, they consider whether to

pump more cash into its economy. In Asia, shares are falling sharply

after revenue targets a cart. -- Irish kart. -- archive. Spain is in

the spotlight as it faces an important test of investor

sentiment with a bond sale. They are looking to raise 2 billion

euros on the financial markets to pay a hefty price to sell the debt

with potential buyers. Europe is considering ways in which to rescue

the country's banks. The finance minister warns that the door was

not open for Spain. Spain insisted it will not make any decision on

financial aid after and IMF investigation into the banking

sector has been concluded. How did that go down with the financial

markets? Let's have a look at the numbers. Hopefully we will get some

numbers. Hopefully we will get some animation. The Dow Jones closed on

Wednesday looking positive. That is flowing through to other markets.

There was some record-breaking Territory. Breaking through to the

Brazilian market. Hardly surprising, given the sense that Europe must

act now, rather than later. The possibility of quantity of easing.

possibility of quantity of easing. possibility of quantity of easing.

-- quantity of easing. Let's take a look at the Spanish-born sale.

Given that the banking system is very weak and there is talk about

it having to take money from the UN di mare, why would people want to

buy it? That is the question indeed. They say the country shut out from

the bond market. -- from the EU and the IMF. They do not want ongoing

supervision. No humiliation or loss of face that other governments had

to endure. The current government was on the recently elected and not

elected on the platform that they would seek aid. Spain has a problem

which she is that the market is pricing its debt at 6.5%, which is

not far from the levy which other countries seek to bail-out funds.

Today's auction will give us more evidence at how much closer they

are made into the threshold. could argue that if the take up his

way, that would be humiliating for Spain and potentially forced them

to ask for aid whether they like it or not? Indeed, at the moment it is

not clear if the current mechanisms to support countries would be in a

position to give some money to recapitalise the banks and save the

government from an austerity programme. The programmes are not

in place and there are grave reservations against that approach.

If a way was found to do so, Spain may run out of money in a few

months' time despite having recapitalise its banks, the deficit

will keep growing. Ireland and Portugal and other countries have

faced this. If the Spanish government were able to access the

money from the IMF and they agreed to pump the funds backing to the

banks, that is hardly fair to other countries which may need those

resources. They need 75 billion euros, at the Spanish banks to

recapitalise. That could grow over time if the economy continues to

slow or stay in recession. Therefore, that is another chunk

out of the armour of the 44 billion euros from the eurozone. Thank you

for joining us with your analysis. Let's stay with the banking sector,

returning the spotlight on the UK, it is back in recession. Also, the

US economy is slowing down. The central Bangkok both countries are

under pressure to stimulate growth by pumping money into their

economies. -- the central banks in. First, the Bank of England's

interest-rate meeting. In a rare piece of good news, the

manufacturing group reported a resilient moved in factories. The

BMW plant in the UK is celebrating building its 300 millionth engine.

It trained by 3% last quarter. The question today is whether the Bank

of England will stimulate growth by creating money to buy out

government bonds. First up, the Bank must decide whether concerns

about the British economy now outweigh concerns about inflation.

Given that inflation is now falling and the recession is now debarred

them we first thought, today could be the day that the Bank announces

further stimulus. Those supporting the idea include

Christine Lagarde from the IMF. Last month she suggested the Bank

of England should look at easing the interest rates. Most economists

think that is unlikely. Interest rates and bank rates are at their

lowest point. The issue would be if they continue asset purchases with

the hope to drive down longer term purchases. There is a chance they

will make that move today. Last month, several members of the Bank

committee were balanced on the quantity of easing. With rates at

rock-bottom, the question is to find any mechanism which is truly

effective. Also today, the head of the

American central bank would testify to American politicians, like the

Bank of England and many investors, they are clamouring for more action

to stimulate the economy. In the heart of New York's

financial district, investors are watching Washington. They're

waiting for the Federal Reserve chairman, looking for queues as to

what policy makers would do when they meet later this Mark --

looking for clues. The US economy needs a jolt. -- late said this

months. The stock markets have had data more to as few weeks and

unemployment is higher. The question is what can the government

do that they have not done already. They have already had easing. They

poured trillions of dollars into the US economy. And a bond buying

programme called Operation twist and slated his mark. -- the stock

markets have had a tumultuous few weeks. -- later this month. Will it

be enough to reinvigorate the US economy?

Shares in the Taiwanese smartphone company HDC have fallen after they

cut their revenue targets. Take us through those numbers

please. Shares are down by as much as 7%.

This is the fifth largest smartphone maker from Taiwan. It

has become one of very few Asian companies which were posing a

threat to the big players such as Apple. From 2010, its sales jumped

by four times, its shares also tripled. They started to lose out

last year because they could not keep up with the fine Mac or galaxy

models from Samsung. -- iPhone. It goes to show how quickly things

change in this market where consumers are always on the lookout

for something new and different. I guess HDC have not been able to

keep up with the bigger rivals such as Apple and Samsung.

The head of the Nasdaq has apologised for the Nasdaq Crows

Park problems with the share sale of Facebook. -- the Nasdaq's

problems. They will give $40 million to clients who lost out