06/09/2012 World Business Report


06/09/2012

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Those are the latest headlines. It is now time for World Business

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A very warm welcome to World Business Report. Time to deliver it

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- press announced on the European Central Bank to present a solution

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to the eurozone crisis. A key partnership in the aviation

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industry as Qantas and Emirates forge an alliance that will shift

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the Israeli carrier's long haul up to two by a from Singapore. --

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Australian. Plus, defending Obama's economics.

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He will argue that it could have A very warm welcome. The summer

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holidays are officially over. Once again, decision time looms for the

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eurozone. Chancellor Merkel is in Madrid today, trying to gauge how

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close they may be to needing a full bail-out. Meanwhile, in Fringford,

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the European Central Bank holds a vital meeting. -- Frankfurt.

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Expectations have been riding high since the ECB chafe would do

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whatever it takes to preserve the euro.

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First we go to Germany. Europe's paymaster has to decide between

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digging deeper into its reserves to keep the eurozone currency intact

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or cutting its losses. Now Europe Business Correspondent reports from

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southern Germany. They have been making top-quality

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pencils here for over 250 years. The paper generation of the family

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is unlikely to be courted by a currency crisis. What the cut the -

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- family doesn't care for is what it sees as pre-election posturing

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by some of the region's populist politicians. Those who were to stop

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extending a financial lifeline to the eurozone's most over-borrowed.

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His message, Germany has to hang on in there. to say we have to get rid

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of Greece is easy. We do not know what comes in addition to that. We

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would have to be aware that it would be very expensive. Had we

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keep our competitiveness in Germany? There is no good solution.

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There are only lousy options. The question is which is less lousy? I

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am still a fan of the euro. It is a big slice of a tax take from

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successful companies like this which are autumn at the Bank Rowing

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After a summer of discontent here in Bavaria, what is the tipping 0.4

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Germany? Nearby, the chief of this toymaker believes more bail-outs

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will be supported. I think what we definitely need is some kind of a

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sign for a positive trend. It will be very hard for people to look at

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a sharp decline and still say, let's go for it. In some countries

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we need positive trend reactions and I very much hope this will

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happen. The game could be changed by a court decision halting German

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rescue spending next week. Germans here to see resigned to providing

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more supply a tour of the eurozone together.

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Analysts saying that the president of the ECB is relief on the line

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today. He set himself up as the man whose mission it is to save the

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Euro, but it has been over a month ape since he said he would do

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whatever it takes to say the currency. Have expectations been

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ramped up to lie? I think there is enormous pressure on him and the

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European Central Bank. But I think they would deliver today. He will

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present a plan on how the ECB thinks they will purchase bonds to

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support the country in need. Will this proposal prove any more

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effective than the very similar security market programme which we

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saw last year? It depends on the details. I think it will be better.

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I think it will be more effective. Let's not forget it will also

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depend on cue medication. Here, the German central bank is key. The

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whole programme was often torpedoed by the hold President. If the

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current president can keep a lot communication profile after the

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decision, I think the entire plan can be much more effective than

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what we saw over the last two years. Let's talk about Germany. The

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President is repeatedly described as walking a tightrope. Germany's

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Central Bank has repeatedly come out and said it is not the job of

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the ECB to bail out weaker eurozone economies, that the job of the

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Central Paper is solely to focus on price stability. Can it be moved on

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this point? The ECB will try to continue walking on this in mind,

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saying it is not financing governments, but that it is mainly

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aiming at repairing the so-called transmission mechanism of monetary

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policy, which means they will try to have an effect on short-term

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interest rates. These are the rates that are linked to the ECB's

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interest rate. If they can no way it, it will also have an impact on

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the economies because then companies and people can borrow

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much cheaper. Some long expected news from

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Australia airline -- Australian airline Qantas. Tell us all about

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this, this partnership between Qantas and Emirates. Was it would

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be expected be expected Well, it was quite a surprise to

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many aviation analysts. They signed a ten-year partnership and this

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will involve moving Qantas's hard- fought European flights to Dubai

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from Singapore. They will are lying ticket prices and flight schedules.

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This decade-long agreement may also save Qantas from more losses and

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turn around its fortunes. Last month the carrier posted its first

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annual loss since its privatisation 17 years ago. Analysts say this is

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also a significant departure for Emirates which has avoided closer

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of partnerships with rivals as it has grown into the biggest

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international passenger carrier. You also have intense pressure from

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its rival Etihad. It also offers an Reds greater access to Australia's

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booming domestic treble network. This deal will probably reignite

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long-stemmed complaints who say it is unfairly subsidised.

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Markets have reacted positively to this news as well, haven't they?

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Shares in Qantas have jumped some Later today, Barack Obama will

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accept the Democratic presidential nomination and deliver his

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convention speech. His narrowly ahead in the polls, but the economy

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is the top of voter concern. Unemployment has been a but some 8%

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for 42 months now. That is the longer since the end of World War

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II. What can he see that might convince voters that he can get the

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economy back on track? Barack Obama's election in 2008

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sparked celebrations in Harlem. Four years on, millions of American

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jobs have been lost. The support is still there, but people are less

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starry-eyed. I am a supporter and I think he's doing the best he can.

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think he deserves a chance to finish what he started.

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Charlotte North Carolina, Democrats argue the economy would have been

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far worse without President Obama. When he took office, the economy

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was falling off a cliff. Financial services, the credit markets

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closing down, the water industry collapsing, the housing industry

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collapsing. 800,000 jobs were lost in one mind. It was a precipitous

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decline. Within a few months, through a series of major policy

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initiatives, including the stimulus package, the economy began to stop

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the fall and began to rise. message unlikely to keep him in the

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White House, so the President has been travelling around pushing his

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economic plan. What would a second administration do? It would raise

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taxes for wealthy Americans, invest in communication and infrastructure

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as well as alternative energy. The Obama faithful to not expect to

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return to the magic of 2008. They just want to avoid disappointment.

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He has a good vision and I like his wife and family. It could have been

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a lot worse is a tough sell. That is undoubtedly the message of

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President Obama Collingwood Magpies first term. What does one do here

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