19/06/2012 World Business Report

selfish and wrong. Those are the latest headlines from

BBC World News. Time for the financial news with World Business

Report. Welcome. The headlines: A second

line of defence. The IMF says it has raised more than $450 billion

for its crisis fighting fund as European leaders vowed to do

whatever it takes to save the euro. I am Rico Hizon in Singapore and

Asian stock markets are soft this Tuesday as eurozone fears shift

from Greece to Spain. Microsoft unveils Surface, a series

of tablet computers to rival the iPad, featuring a cover that

Europe will take all necessary measures to protect the eurozone as

tensions on financial markets rise. That is the message from the G20

group of top economic powers as they continue their meetings in

Mexico. The IMF has also announced it has raised $456 billion in a new

crisis fighting money after 12 more countries including China, Brazil,

Russia, India and South Africa, pledged funding for an expanded IMF

war-chest. Our correspondent is at the summit in Mexico. She caught up

with their head of the WTO. Talks amongst the world leaders were --

will continue about what to do about the challenges facing the

economy. To talk more about this I am joined by the Director General

of the World Trade Organisation. Can you tell us, what are the key

priorities? I think that in these very shaky world economic outlook,

what we need is G20 leaders to send a strong signal that they are ready

to co-operate. Knowing if they do that the crisis will be shorter.

But obviously we're not there yet. Europe is one of the dark spots in

the world economy, not the only one, but short-term, the darkest one.

you think the focus should be on the eurozone? It is not the only

issue, but first things first. What we need is this trade of which

Chancellor Merkel has suggested between more solidarity against

more common discipline. The concept is there. I think it is the right

concept. What is still missing is, how do you get their short, medium,

long-term? What sort of a timetable? That is what the rest of

the world and that is what markets need in order to stabilise. We're

not there yet. You do not hold much hope we will get there by the end

of this meeting? It is a global meeting. It is not a meeting only

about Europe. They have to sort out their own problems. They'll get a

strong signal from the rest of the world. I spent a lot of time in

those parts of the world. They will get a strong signal that the rest

of the world needs a convincing, credible road map for times ahead

to calm within the EU. We know that otherwise the risk for Spain will

be great. That was the head of the WTO.

More bad news about Spain's banking sector put paid to the relief we

saw on the financial markets this time yesterday. The probe bail-out

party won the election on Sunday in Greece. But stocks in Spain and

Italy ended down 3%. Spain's borrowing costs surged. But then of

course we have just had the news from the IMF coming out of the G20

summit that they have boosted their coffers are significantly. How is

this affecting the markets? Rico Hizon is in Singapore.

A lot for investors to digest at the moment.

Absolutely. China basically confirmed they are contributing 43

billion US dollars to the coffers of the IMF. That is why we are

seeing some of the losses being eased up this Tuesday afternoon.

Currently the scene is more of contagion. Greece's election

results basically a evaporating in midday trading amid fears Europe's

debt crisis is in danger of worsening. The focus is back on

Spain whose bond yields are rising above 70 -- 7%. Italy is being

closely watched as well by Asian investors. With this uncertainty in

the regional markets you have the likes of Japan, Korea, Australia

softer today by at least 1%. Traders say investors appear to be

fed up with the inability of European leaders to resolve the

crisis. Sepoy. In Singapore, Rico Hizon. --

Thank you. We will talk to and economists now. So many messages

coming in. Don't accuse of doing nothing. Give us your take. We are

in a period of uncertainty. It started with the great collections

and it will end her fully with the summit at the end of June. -- the

Greek. Between these two we have all of these deliberations going on

about banking union, fiscal union, growth pact, and all of these

initiatives they want to do to try to stop the eurozone crisis. It is

a good point to have the eurozone - - the G20 summit at this important

time so that world leaders can give their input. But in the end it will

be the Europeans that will have to decide in two weeks. We are

expecting a communique from the G20 that will outline moves by European

leaders to consolidate banking, to have a more integrated system for

banking, but also as well to see more fiscal union. That is

important. But this second line of defence the IMF is talking about,

this extra funding, more money pledged from G20 countries, will

that bring, well, well that ease fears? $450 billion, if it was just

used for Europe, it would be good enough for Spain. Maybe it would

have bitterly. If there is something going wrong in Europe,

the IMF protects the rest of the world. On this thing that cannot

protect the world from anything happening but it is a sign of

reassurance for the rest of the world. Europe has to solve its

problems for itself. It cannot rely on the IMF or the global leaders.

The Americans, for instance. This is good for the rest of the world

more than for Europe. Thank you for your analysis. We are hearing out

of the G20. The stock about the technology story today. Microsoft

has unveiled its tablet computer to compete against the iPad. Offerings

from the likes of Samsung as well. The touch-screen computer is

Microsoft's first major venture into computer hardware. A key

feature is a colour that folds out in the form of a keyboard. Our

correspondent is in Los Angeles. He was at the launch. Shrouded in

secrecy. Tell us more. We saw a middle picture there. Tell us more

about the event. Yes. It had the usual glitz and glamour we have

come to expect from this top-secret product launches. We did not know

where it was going to happen until a couple of hours before it started.

When they unveiled it, it was indeed his new venture for

Microsoft into the Tablet touch- screen market. Clearly very similar,

competing against the iPad, its great rival Apple. They were keen

to stress that this was also a computer. It was a light computer

that would be used in that way. But it was also decided the format of a

widescreen TV. Certainly something they are trying to do to compete in

this market that has been very much dominated by Apple. No-one has

managed to become a strong competitor. That is what my Chris

Scott hope this will be. -- that is what my -- Microsoft. But it will

be some months before consumers will be able to catch it. No

indications as to when it will go on sale, or how much it will cost.

That of course will be vital when it comes to competing with the iPad.