15/06/2012 World Business Report

gas in a series of co-ordinated attacks. Knight is time for World

Business Report. Extraordinary measures from Britain to stop the

economy going into reverse. Wal-Mart China accused of safety

violations. It is its third accusations since October.

The British government and the Bank of England have joined forces to

keep abreast to the UK economy. The Central Bank will provide cheap

funding for Britain's High Street banks. The funds will have to be

directed to households and businesses. Sam Mervyn King said he

hopes the scheme will be operational in the next few weeks.

The Bank of England is also activating an emergency scheme to

making additional financing available to prevent any problems

in at Euro to the UK banking system. George Osborne had this to say.

Governor and I will take co- ordinated action on liquidity and

funding for new bank lending to injected new confidence into our

financial system and support the flow of credit to where it is

needed. We are not powerless in the face of the eurozone difficulties.

We can deploy a fire power to defend our economy from the crisis

on our doorstep. On Spain is likely to be the focus of attention today

because borrowing hit a record on Thursday, around 7%. Battalion

borrowing costs are also rising quickly. An urgent solution is

required to restore confidence. We speak to a market strategist. If I

was a cynic I would say that quantitative easing has failed.

that is a fair opinion. We have not only seen that from the Bank of

England. It has given a short-term lift but it has not fed through

outside the financial system. what context should we see this

announcement? The last throw of a desperate man? It is possible that

it will help. At is that really the problem? There is still the

struggling European economy and it is a much bigger issue. It ties in

neatly with the other thing I wanted to raise - we are under

pressure not just from the eurozone, but also from the US. This is

supposed to turn things around. How quickly willow tit the economy,

given these outside pressures? Fairly quickly. They said they will

put it in place in the next few weeks. It may take a few months to

feed through to the economy. Or it may insulate us slightly, but

everywhere else is still a bigger problem for the UK. We will join

you later for the newspaper review. The election in Greece is held on

Sunday. That is seen as a referendum on Greece's continued

membership of the single currency. Politicians keep telling Greek

voters if they want to keep the single currency they will have to

put up with austerity. After five years of recession they have had

enough. Our correspondent reports. And this man runs a corner shop and

prides himself on his fresh, local produce. He worries that his

customers have developed a taste for imported food, which will

probably be priced INAUDIBLE. INAUDIBLE. Close to 5 euros full

stung so, this will be 9 euros at least. Will any by the Viet? A lot

of people will not buy it. Indications are that the government

may need to control and manage food distribution. Many will not be

surprised if the power goes out in the middle of interest season. Even

if Greece hangs on in the euro for a while longer, Greeks will have to

adapt to lower living standards. Part of the savings that delivered

by a goods and services. This must change. In the commercial sector

businesses have scaled down the prices they ask. The level of

prices in the markets is reminiscent of when Greece was

growing. It does not correspond to the current situation. The future

may bring gaps on the shelves as Greeks learned to eat what they can

produce and sell at a lower cost. BBC News was stung the world's

biggest retailer, Wal-Mart, has problems in China. What to do they

have to do? They have been engulfed by a food

safety accusation. A Wolmar store in Beijing sold sesame oil in

spring with dangerous amounts of chemicals. While Mounties not

speaking at the moment, not commenting. It comes on the back of

another accusation made this week in China than they had sold Paul

Cripps from dead pigs. -- pork it reads from diseased pigs.

A former billionaire has been sentenced to 110 years in jail

following his conviction the in March on 13 charges including fraud

and conspiracy. Prosecutors accused him of defrauding investors to

finances and his lifestyle. He denies any fraud. Moody's has

downgraded five Dutch banks. It said that if Greece believes the

euro there could be further downgrading. AIG has repaid its

bail-out loans to the Federal Reserve Bank of New York. IAG also

received $68 billion from the US Treasury. Opec's oil ministers will

keep their production target steady despite a 20% decline in the price

of oil over the past two months. On Thursday the benchmark in New York

closed higher. In spite of the uncertainty over Greece and the