26/11/2012 World Business Report

More than 800 homes and businesses have been saturated.

Time for World Business Report. Welcome to the programme.

Keeping Greece solvent. Another attempt by European officials to

patch up a row over relishing bail out funds to keep Athens afloat. --

releasing bail out funds. Is the time right for Spain to ask for a

bail out? A deadly fire at a Bangladeshi

garment factory making packed an industry that exports more than $20

billion worth of clothing. A third attempt in as many weeks -

Greece's international lenders meet in Brussels today to try to unlock

the next 31 billion euros of bail out money for Athens. The money is

still being held back by the Troika of the EU, IMF and the European

Central Bank. Take the bail out and goes, say

thousands of state workers about to lose their jobs. -- and go. So far,

Athens cannot get the money. If it is to get the money today, there

must be a compromise between the IMF, which cannot lender to

insolvent borrowers, and the eurozone, which is willing to allow

Greece two additional years to meet its debts cutting target and slowed

the descent into economic depression. -- a rest of the

descent. -- slow the descent. But Germany

says that debt relief cannot be realised. This desire is only human

but they will not be an answer. This is a process. Something that

has not been done for years cannot be done overnight. The market says

there will be another temporary solution - a complicated manoeuvre

leaving the door open to write- downs later. When must be clear

that these measures do not exclude the need to reassess the

sustainability of Greece in the coming years. Greece needs that

money now and analysts believe they may get it as early as today.

Greece is likely to be given more time and it is likely that their

debt levels will be cut but not as much as the IMF would like.

These delays have gone down poorly in Athens but the eurozone also

knows that anger may erupt in other rescued countries if Greece gets

more special treatment today. Catalans have voted in favour of

pro-independence parties. The result is likely to increase

tensions with the Spanish government, which is under pressure

to take a financial bail out from the EU. Catalonia is the wealthiest

region in Spain, with an economy the size of Portugal. Madrid says

nationalists are looking for excuses after nearly running out of

money. This year, Catalonia was forced to

request 5 billion euros in financial aid from the Central Bank

in Madrid. Many believe that prime minister

Mariano Rajoy would avoid asking for a bail out after these

elections because it would lose him votes. Now that the election is

over, will he put his hand up? Thank you for joining us.

Does this mean the Prime Minister is going to have to ask for a bail

out? What is more important than that is the funding schedule of the

Spanish national debt. They funded largely for the whole of 2012. They

have another 9 billion euros, a relatively small amount when it

comes to the art stand in debt. The funding picks up quickly next year.

They have -- outstanding debt. The funding picks up quickly next year

and that is a pressing need for them rather than the issue of the

regional elections. With this result coming from the

elections, how important is this really for Spain as a whole?

This is a constitutional crisis. On the one hand, the Catalan region

has given a man debt -- mandate to pro-independence parties. At the

same time, the central government says that any referendum would be

illegal. So we have this clash. The regional government goes back on

its manifesto war they break the law. This is going to be a

constitutional crisis. 15 billion euros is anticipated to be

transferred between Catalonia and the state. It is not clear exactly

how much of that would remain and revert back to Catalonia in the

event of independence. There is quite a lot to work out. Some

analysts say that what is happening in Catalonia can be seen as

something of a microcosm as to what is happening across the eurozone.

Absolutely. Taxation is all about transferral. Bringing money from

one part of society to another. If you want to be part of society, you

must agree to taxation. In most countries, that is ordinarily

accepted and mandated according to the nature of the country but with

Europe at the moment, we are seeing these huge transfers from northern

countries like Germany to the southern countries like Spain.

Ironic that Spain may potentially ask for a bail out from other

countries while at the same time there is the possibility that

Catalonia may separate. Looking at Catalonia specifically, if it were

to gain full independence, warned the region be as wealthy as some

anticipate it would be? According to some anecdotal evidence, some

businesses have been incentivise to move their headquarters out of

Barcelona into the main territory of Spain. There are suggestions

that some tax revenues that are governonian

government might move out of the centre. -- that currently go to the

Kat Moon in government. And administrative costs would have to

go back to Catalonia. There are some checks and balances. It is

unlikely that Catalonia would get that Hall 15 billion euros. One

issue to consider is that Catalonia, if it were independent at the

moment, trains for the rest of Spain and that would be affected if

it were to get independence -- trains in the market with the rest

of Spain -- tades. A deadly factory fire in Bangladesh has prompted an

investigation into the garment industry's standards. What effect

could this fire have? The industry must have a look at its current

rules and regulations regarding factories because it could impact

not just the industry but the overall economy. The garment

industry is a major source of revenue for the country. It brings

in 20 billion euros -- $20 billion US in exports mainly from the US

and Europe. Bangladesh has thousands of garment factories

exporting various forms of closing to major retailers in about one

dozen countries but over the years, many of these factories have been

criticised for not having proper safety initiatives in place.

International retailers could stop dealing with Bangladeshi retailers

if they fail to implement the measures to protect their own

workers. Shares in a Japanese company are rising sharply. Why is

that? They are currently increasing 6% after a Japanese media report

said that shareholders had accepted a bail out from a government-backed

fund. That will purchase 60% of the struggling company for more than $2

billion US. Major clients like Toyota, Nissan and six others will

supply the remainder of the money. Renaissance, a key supplier to

Japanese automotive makers, has seen demand decline in recent

months. More information will be announced in early December.

Argentina will today appeal a US court ruling that demanded it had

to pay out $1.3 billion US to investors holding bonds that the

country defaulted on in 2001. The government has until 15th December