12/07/2012 World Business Report

narrow the deficit. Those are the latest headlines. Now

This is the World Business report. Here are the headlines: Per show is

ready to cut more jobs. For and a surprise rate cut from

South Korea highlights how central banks are combating a slow will

global economy. And good news for Ireland.

Good to have tea with us. Top managers of per share will meet

union leaders today. The bosses are likely to deliver some grim news.

It is thought the company wants to shut one French plant at the cost

of 3,000 staff. There could be up to 10,000 other job losses across

France. The announcement is likely to upset the new government of

Francois Hollande. All European carmakers are feeling

the squeeze. Peugeot has seen sales fall by 13%. Worst hit was the

eurozone. Countries like Spain and Italy see new cars as a luxury. Job

cuts are seen as inevitable. It may even see the closure of a French

factory. The French Government expects the west today. It is the

bad news was deliberately delayed ahead of the presidential elections.

TRANSLATION: We know that this meeting will bring bad news. But

why was not this news revealed months ago? This is typical of

Nicholas Sarkozy. He chose to delay the announcement, rather than find

a solution. It is a first major challenge for President Francois

Hollande. He has made French industrial recovery a top priority.

There is pressure on his administration to do something to

save the car industry. The reality is there is little he can do. He

can poach management to offer the best terms possible. If the French

voters hope a socialist administration would stem the

threat of redundancies, they could be in for a harsher wakening.

There could be a rare piece of positive news from the EU resent

today. The European Union International Monetary Fund and

central bank issued their latest report on Ireland. They are

expected to be happy with the nation's progress. Investors will

be keen to see the latest numbers on economic growth.

Dublin's port is the hub for half of the goods which Ireland exports.

A strong trade figures meant that its economy grew for the first time

since 2008. Troubled countries can recover at the same time as they

cut spending. Business has been slowing lately. Ireland's exports

have fallen nearly 2%. Mostly because of weak demand amongst of

trading partners. This has tipped the economy back into recession.

Here it is hostage to outside forces. Specifically, the slowdown

in the eurozone. It is an export dependent economy. The Irish

government is planning to get back into the lending market by the end

of next year, sending newborns. -- selling the new bonds. It could be

free from the need to follow the austerity regime. The market seemed

increasingly confident. The interest charged on long-term state

bonds has fallen to just over 6%. A sudden drop taking place a

fortnight ago. That coincided with the agreement at last month's

summit that bailout funds can be channelled directly to troubled

banks. From an investor's perspective, the banks are the

weakest link. They have the greatest potential of bringing the

Irish economy back. But they have made vast improvements. If you take

the weakest link out of the picture, the average economy looks

relatively healthy. There is pressure to make the economy

healthier still. For the Irish government to succeed, it needs the

economy to grow over 2% per year. All the way through to 2016. And

that is a tall order. Another sign today of the concern

over global growth, a surprise move by South Korea's Central Bank to

cut interest rates. Tell us more about what South Korea did to try

and boost its economy? They have cut rates. This is

Trivedi first cut in three years. It comes amid concerns off a global

slowdown. It was cut to 3%. Japan has also had a great decision a

little while ago. It has kept its monetary policy unchanged as well.

They are fine-tuning their asset buying and landing programmes. They

are doing this because of concerns of this global slowdown. All of

this following rate cuts by the European Central Bank and China's

central bank. Hussain did stimulating domestic demand as the

European debt crisis continues to hurt. Slowing demand from key

markets in Europe and China has been a huge worry. There will be

key demand from China. Second quarter figures out tomorrow. Last

month the Korean finance ministry has highlighted this concern about

them slowing. They cut their Chris forecast to 2012 to 3.2%. The

announced stimulus programmes to boost the domestic economy. The

central bank expect the pace of the economy to be slower.

We will leave it there. Thank you very much indeed. A lot of news

concerning markets in Asia. For a look at some of the business

stories. If Yahoo is holding its annual shareholders' meeting. It is

expected to confirm or their new chief executive. He has been acting

CEO since Scott Thomson was signed in May. -- resigned. Winter has

been hard for Yahoo to keep pace. They will have a new seasoned media

industry executive. HSBC will not apologise for her --

not apologise -- apologise for having -- not having measures in

place to tackle money lending. This is according to Today's Financial

Times. They could be fined up to $1 billion. The chief executive says

control should have been stronger between 2004 and 2010.

And Indian software giant says that first-quarter profits rose by a

third. The company cut its growth forecast, saying its biggest

clients are cutting their spending. Three-quarters of the company's

sales come from the United States. A Europe's biggest retailer is

expected to report falling sales for the second quarter. Spanish

markets are hurting the retailer. They are waiting to hear from the

chief executive. And he may warn of weak first-half profits.

Not surprising when you hear that news to see the shares are falling

across Asia today. In Australia we had worse-than-expected jobs

numbers. The global economic story heading worse and worse. The strong

Australian dollar does not help either. These are the currency

markets at the moment. It is also fears about the outlook for the