21/06/2012 World Business Report

temporary ceasefire. The headlines: Another boost for

the US economy as the third lowest interest rates.

The test for Spain as it sells debt and finds out what looks in its

banking sector. Any private sector survey shows a

slow in China's economy. The US Federal Reserve is giving

the flagging US economy another push. It is extending a programme

called Operation twist which aims to keep a long-term borrowing costs

also was possible. It is hoped that will encourage businesses to borrow

and invest and create jobs. Like they did last summer, as the

sun goes. The Federal Reserve is deciding to twist again. At the end

of a two-day meeting in Washington, American central bankers have

decided that the economy has got sufficiently worse that something

more needs to be done. They have extended a programme known as

Operation twist, which involves keeping long-term interest rates

low by applying additional bonds. The chairman of the Federal Reserve

said at a news conference that if need be, they would take more

action. We have taken a step today which will provide additional

accommodation for the economy, and we have stated we are prepared to

take further steps if necessary. We are prepared to do what is

necessary. We are prepared to provide support for the economy.

Investors had been hoping for a stronger message -- stronger

measures, such as quantitative easing. But clearly the Fed wants

to keep some ammunition in reasons. He was at said the Federal Reserve

building in Washington. There has been further evidence to do have

this learning Chinese economy. A closely watched index of factory

activity has fallen for the eight months in a row. Our correspondent

has more. This is a story we don't want to hear.

Yes, he to SBC's Purchasing managers' Index revealed expect

orders and prices turning in their weakest showing since the early

2009. It came in at 48.1 in the month of June. This is a seven-

month low. A reading below 50 is a contraction. With external

headwinds remaining strong, exports are likely to decelerate. The sharp

fall prices and moderation of new orders suggests a weak domestic

demand which poses more pressure for Chinese manufacturers going for

it. The latest Economist stress to push China to further boost its

economy after cutting interest rates are leaders month.

Will prices are on the move. Taylor is more about that.

Oriel prices continued to head south, falling to levels not seen

in 18 months. Crude is trading below $92 per barrel. Prices are

being pressured by an unexpected rise in supply. US group Oriel

stockpiles a lasting last week. The final forecast is for a 1.1 million

barrel decline. Analysts say this rising supplies situation is

indication that less Americans are driving cross-country. They are

receiving, and the US economic recovery is anaemic.

There is plenty to watch out for today in Europe with the East debt

crisis continues to strict -- stress leaders. It will be a test

of confidence in Spain which has been flagging recently as investors

wonder if the government can continue to finance his debts.

There will find out how bad the situation is for the banks.

Independent reports will be submitted to the government. It is

not clear if they will release the details. We will get the latest

snapshot of how European manufacturing is faring. A busy

agenda. Our correspondent has more. They will be a lot of interest,

went there, in the various stories I have just mentioned? Yes, a very

interesting day in Spain. The first thing to do is to talk about the

Spanish auction. It is a very small auction. Because the market has

rallied so strongly, because some of the rumours of good news, we are

not worried about the auction. The stress tests will be more thorough

and almost. The two American firms running the stress test have very

strong reputations. There will be looking to return -- protect that.

If more things Stewart later, they will have reputation will damage.

It should be a good case. Some are saying the Blackhall could be 70

billion euros. I think it is bigger than that. 180 billion euros I

think. If that is the case, the 100 billion euros would not cut it.

Well, that is only the money that the banks will require immediately.

You have got to look at this in the long-term prospects. But we still

have a declining property market. That is where the bulk of the

problem assets are. That hasn't finished yet. As long as Europe and

Spain remain my it in a recession, we could see the scale of these

asset bubbles continue to get worse. That is one of the things these

reports will highlight. When you say it could go better because of

the various rumours that have come from G20, what do you feel the key

room is? The talk at the European stability mechanism might be able

to buy bonds are directly back? Angela Merkel denied that quite

strongly yesterday. She said it was the heretical. That is her speak

for is not going to happen. We will see something happen. The pressure

is such now that we really do need to see some kind of movement. If it

is the bail-out funds being allowed to invest directly, or simply

renewed buying, we're not certain. We will watch this space. Thank you

very much. Jaguar has performed well in a

closely watched survey of car quality. In a latest survey of US

customers, Jaguar was the most improved luxury brand, jumping from

20th to second. That is next to a new model. Dinner will Motors had

its best ever performance. The Cadillac and Chevrolet have

improved reliability. The Crown Estate made �240 million in the 12

months until the end of March. But there was strong demand for shops

on Regent Street and son James. The Crown Estate also owns the wind

farms and homes. America's third richest man has bought and Hawaii

Ireland. The price was not disclosed. It is reportedly more

than $500,000 -- $500 million. Starbucks group's three pinnate he

by in its own home town of Seattle. The new store will sell more than a

key types of loose-leaf tea. The markets today are being influenced

pole the stories we have mentioned so far. The roses are available at