27/09/2012 World Business Report

standoff over Mr Assange. Now for the latest financial news with

World Business Report. Spain's borrowing costs surged above 6%.

The US eases more economic sanctions on Burma. Another grim

quarter for Research In Motion. Will customers keep the faith will

go elsewhere for Blackberry. After a brief respite, financial markets

are once again piling the pressure upon Spain. In Madrid, the stock

market closed down almost 4% on Wednesday and the government's

benchmark borrowing costs - the yield on its ten year bond - surged

back above 6%. As you've been hearing, Prime Minister Mariano

Rajoy will try to win back some investor confidence today with a

tough budget for 2013 with some 39 billion euros of cuts and tax rises.

This against the backdrop of mass anti-austerity protests and a

growing assumption that Spain will have to seek a full financial

rescue. As if to underline this return of nerves on the markets, a

report this morning from Ernst and Young says the policy response to

the crisis falls short of being a game changer. It warns the

Eurozone's economy will get worse before it gets better, with

recession continuing into next year and unemployment continuing to rise.

And that deeper economic and fiscal union is needed to save the single

currency, as well as a shift away from austerity and towards growth.

And that deeper economic and fiscal union is needed to save the single

currency, as well as a shift away from austerity and towards growth.

You are tempted to the CBD policy as a temporary sticking plaster.

The CBD cannot save the eurozone. It cannot kick-start growth again.

It cannot influence the stability of the eurozone. What we have seen

in recent days is a reflection of that. Investors were comforted to

know the scheme would buy bonds for the bail-out programme. But the

situation on the ground is one in which we have had fiscal austerity

in Spain. We have whole salt and companies trying to reduce to that

with rising unemployment. We saw the really on the markets when the

plan was announced. Yesterday we saw the index and Spain should 4%

suggesting markets have run out of patience? Markham's of waiting to

see if they will buy bonds from the Spanish government. Recession is

inevitable not. Will it have to go for it full bailout? It will have

to. They have done a lot in terms of fiscal austerity. It is not so

much that they need to do more, that they need the European Union

to dictate policies, and need outside monitoring, way of

guaranteeing they are on the right track. The CBD then can help them

by giving low-cost loans. In your report, the economy will have to

get worse before it gets better you say, unemployment will continue to

rise. Is that even it, for example, in Spain, we see it go for the full

bailout? There is a lot of work to be done in terms of reducing fat in

the public and private sectors. There need be have to take on more

stop. That means stagnation for some time to come. In the report

you talk about the need for fiscal and economic union to take place in

order for the common currency to be saved. Is that likely, and seeing

how unpopular any moves in this direction are going to be,

considering the protests in Spain and Athens. We do think it is

important to move towards a deeper integration. That is what will

eventually save the eurozone. The Greeks situation was potentially

very toxic if there is a belief that the country may use -- lose

the eurozone. We need to come out of that situation. We need more

policies around banking and fiscal union. You're in favour of further

growth in moving away from austerity? We think it is time to

think about growth and other measures rather than austerity.

US is planning to ease its ban on imports from Burma. It's a key step

in the country's emergence from political and economic isolation.

This is it news? It is big news for their mud. Mrs Clinton announced

the move during talks with the Burmese President of the UN General

Assembly. It is among the last major trade sanctions that have

been in place. She said the move recognised continued progress

towards reform and Boomer. We have also been hearing from a powerful

figure who recently hit US sanctions against him that it.

Saying the government wants to establish a multi-party democratic

system and a market economy. This could not come at a more opportune

time, as the President who leads a nominally civilian government

following the elections is due to speak at the UN General Assembly.

Under his administration, many political prisoners have been freed.

Censorship has been eased. Mrs Clinton said she hopes the move

would give the Burmese people more opportunities to sell to the US

market. More good news as well for Burma, according to a report,

lenders are saying they may plead to million dollars to the country

winning the eight in Tokyo next month. That includes the World Bank

and the IMF. They say they will lead to Boomer the amount that will

support its economic development. - - Burma. Blackberry maker Research

In Motion releases second-quarter results after the markets close.

Investors are braced for more losses as it struggles with

competition from Apple and Android based phones. After a tough few

years, RIM is now pinning its hopes on new handsets and a new operating

system called Blackberry Ten to revive its fortunes. But, as Ben

Thompson reports from New York, customers will need to be patient

as it won't be ready until after Christmas, and by then, many may

have gone elsewhere. The most powerful man in the world trusts

Blackberry to send and receive e- mails. But even its popularity with

government and business has not been enough to stem losses that its

maker Research In Motion. A tough few years for the company. It has

lost a few chief executives. Has suffered several major outages in

the service. And it has seen its market taken over by rivals like

apple and Samsung who have been quicker to adapt to changing

consumer demand. There is a stigma attached to entity and Blackberry.

It is getting past that perception. BlackBerry says its market is still

growing. Last year it added another 2 million subscribers, taking its

total to 18 million around the world. That is thanks to its

emerging markets with new it cheaper handsets. That could come

at a cost. It may now have more subscribers, but with each one

paying less it would dent profits in the future. Can Research In

Motion win back its more lucrative customers. It will unveil a

revamped operating system and Beazer handsets next year. But what

I find and not here all launching new devices in the run-up to

Christmas, many are afraid it could be too little too late. In a market

dominated by speed and change and innovation, persuading customers to

simply wait could be difficult. Looking at the markets, the Asian