25/06/2012 World Business Report


25/06/2012

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decade. Those are the latest headlines. It is time now for the

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money news, here is World Business Report.

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A warm welcome to World Business Report. Headlines: Germany's

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finance minister says Greece has not tried enough to sort out its

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problems. The Finance Minister is set to

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unveil new measures today to boost the weak rupiah currency and the

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economy. Plans for US healthcare could be

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derailed this week. We see what US businesses make of so-called

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ObamaCare. Good to have you with us. Germany's

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Finance Minister has said Greece has not tried hard enough to sort

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had its financial problems in an interview on German television. He

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said that Greece has not fulfilled promises. Those comments do not

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bode well for the Greek government which would like to have the terms

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of its most recent bailout East. Those negotiations will be delayed

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as the Greek Prime Minister's recovers from an eye surgery.

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The uncertainty is heading Greek business.

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News that Greece is keeping the euro for now has been a relief for

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business but it hasn't boosted local demand. It's a hand to mouth

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existence. They later returned to the drachma cannot be ruled out.

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Local businesses cannot look to their bank to supply cash.

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Business he really does face a long list of unknowns. For a start - the

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four main banks are technically insolvent. There is a lot of

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concern over contracts. If there is an unruly Euro exit, some companies

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might be forced to use barter. This is made here, in Greece. In a smart

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industrial unit, the successful provider of office fittings is

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great for that its German partners continued to send in components. It

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says the last year has shown that only the strong can survive.

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don't have the resources now - companies here cannot hold on

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another six or seven months. We are not sure of the banks will support

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us. D using money overseas when you can to be safe? -- do you send.

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have done some of that, but I cannot say that we are panicking...

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Everything out of Greece, know. But you cannot do business here when it

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is an unstable environment and you don't know how many months or years

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will be left. I think we must move, yes. We must move. The election has

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cleared the political air, but one week after the vote mini economic

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problems remain unresolved. -- many economic.

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The Indian government is concerned with the slump in the rupiah. The

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government says it is planning to do something about it. We are in

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Singapore with the details. This has been a trend for the year. It

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has hit a record low now, hasn't That right. You have the finance

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minister saying over the weekend that he and the government will

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unveil key measures today to boost the currency. It fell to a record

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low on Friday. 57.32 against the US dollar. It is now rallying by about

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half a rupee against the green back because of possible moves to

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intervene in the present market. The finance minister did not

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specify what the initiatives are but he said the government

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discussed the situation with the Central Bank governor and both of

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them, the government and the Central Bank, will be taking

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measures to improve market conditions. According to reports in

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the Indian media, some of the key initiatives may include interest

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relief for exporters and increasing the cap for foreign investors

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buying corporate and government bonds. Analysts say a higher than

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it will help the country attract more foreign exchange, thereby

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providing support for the very weak Indian rupee.

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Before you go, tell us about Billabong. It's quite a well-known

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brand. It originates in Australia, its shares are under pressure?

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Yes, they are in big trouble with their shareholders. Shares of the

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surf wear manufacturer are plunging after launching plans to sell new

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shares at a heavily discounted price after cutting its earlier

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forecast. The stock price fell as much as 49% today on the Australian

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Stock Exchange after the firm launched a rights issue at the very

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steep 44% discount to its closing price last week. The firm has also

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been trying to raise new capital in the bid to pay off its debt. It has

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been hit as well with falling sales. The firm has also come under severe

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criticism for launching the discount share price, not least

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because of the rejection of a takeover offer early in the ear. In

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February you had a large private equity firm offering three

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Australian dollars per share to take over the company. Currently

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Billabong's shares are under one Australian dollar per share.

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America's Supreme Court is expected to rule this week over the legality

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of President Barack Obama's Health Care all. The law was designed to

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extend health insurance cover to 30 million people who do not have it.

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It's not just those individuals who have a lot at stake - employers

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have a lot riding on whether this flagship trial is left to stand.

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It has come to be known as ObamaCare, the affordable care act

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aims to extend Medicare treatment at reasonable cost to virtually all

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Americans. This company makes high it end doors and cabinets in New

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Jersey. The boss hopes the Supreme Court will not dismantle President

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Barack Obama's health reform. He says it will reduce the cost of

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buying health cover. It lowers our costs. That is in part because the

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law spreads risk and because it allows small businesses to pull

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together and purchase health insurance the way huge corporations

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purchase it. They pay, on average, 18% less than individual and small

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business purchasers do. The small business support ObamaCare. Many

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other firms take the opposite view. They are worried about intrusive

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government regulation, at extra hassle and possibly increased costs.

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Polls suggest that business opinion is pretty evenly divided. One thing

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is certain, though. Passions on both sides are running high.

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(CHANTING). Passions have led to protests. The issue at stake before

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the Supreme Court is whether Americans can be compelled by law

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to purchase health insurance. Supporters of the individual

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mandate, a as it is called, believe this is critical to the success,

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but others say it may not be a make-or-break issue. One of the

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concerns is that insurance premiums may rise if the individual mandate

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is struck down because it could be the healthiest people who do not

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buy insurance and then premiums might go up. We didn't find that to

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be a large effect - we found an increase in premiums, but only

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about 2-3 %. For this business, a court ruling against President

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Barack Obama's health reforms would make the scheme rougher around the

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edges and more expensive. But the underlying structure would probably

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remain intact. Other business stories court for

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the first time in its history, NatWest opened its branches on

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Sunday. The bank was trying to compensate for a computer failure

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that caused severe disruption for customers. RBS, which owns NatWest,

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said that services should be more or less back to normal today.

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Reports say that the world's bigger -- biggest brewer, is looking to

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take over Mexico's Corona.... Delays to the construction of

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Berlin's new airport will cost an extra $1.5 billion. Officials said

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that the airport, which is 1.5 years behind schedule, will now

:09:02.:09:12.
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cost $5 billion. It's due to open in March of next year.

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A mixed picture on the markets today. Three days of declines for

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the major markets. Mining companies are leading the declines. Samsung

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is under a lot of pressure in South Korea, bringing down the Kospi. The

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reason for the mixed news - they are looking forward to the EU

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summit at the end of this week. They will gather together to

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discuss the eurozone crisis. We talked about the comments coming

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from Germany over the weekend - that does not bode well for the new

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