02/10/2013 World Business Report

Tanzania and Pakistan ranked lowest. Those are the latest headlines from

Political brinkmanship puts economic reform at risk in Italy — eurozone

Blackouts and power cuts — companies in South Korea are looking at a

bleak winter as a date to restart the country's nuclear reactors

Welcome to World Business Report. Also in the programme we take a

Welcome to World Business Report. how political games in America are

political stakes are high in Rome today. Italian Prime Minister Enrico

Letta faces a confidence vote after government. However, what started as

committed to the current coalition. government. However, what started as

committed to the current coalition. They're prepared to vote in favour

of a Letta led, reform focused elections. So far the instability

has driven Italy's borrowing costs only slightly higher. The euro has

weakened. Let's get more on the financial implications that this

game of political brinkmanship may Berenberg Bank. Lovely to see you.

Where they think this confidence vote will go today? Really close

call. Italian politics are very volatile. The Prime Minister only

needs a dozen votes in the Senate to survive this vote. There are quite a

few different is in Berlusconi's. There are probably some perfect

few different is in Berlusconi's. in the committee on's protest party.

—— comedienne's protest party. The mood seems to be moving away from

Could this finally beat the air mood seems to be moving away from

of Silvio Berlusconi? Dare we say it. —— could this be the end of

of Silvio Berlusconi? Dare we say stop he has lost clear allies in the

past. They may be challenging his stop he has lost clear allies in the

past. They may be challenging his position. This time, it is his own

tax fraudster. It is looking pretty party that is falling apart. It

tax fraudster. It is looking pretty grim for Berlusconi at the moment.

But he is the Houdini of Italian politics. The Eurozone debt crisis,

out? It is the third largest economy where does this latest debacle put

does go down the road of elections, in the Eurozone. It will have an

does go down the road of elections, Berlusconi, it may have the opposite

Over the summer, there was a real lull. The German elections are out

of the way. Angela Merkel is still at the helm but we do not know who

her coalition will be. Where are things? We have some news out of

unemployment. Figures that are still very grim. What is your take on

where the Eurozone economy is out at the moment? And the future with

Angela Merkel at the home. —— at the forefront. All economies in the

world have issues, structural, cyclical. These problems might be

elsewhere but they're manageable. With growth, they're definitely

manageable. The Eurozone looks a lot better than it did last year. We

extensions. —— a allowed extensions. These are decisions that now look a

lot easier to do and a lot less consequential if they get delayed

will talk to you soon. And she very much. Any results we get out of

Italy, we will keep you up—to—date One of the world's against economies

imports almost all of its fuel. One of the world's against economies

imports almost all of its fuel. Factories are also set to suffer,

the country is home to some of the world's biggest technology and car

producers: from Samsung to Hyundai. Lucy Williamson sent this report

This is how South Korea's energy future was meant to look. But five

years on, South Korea is facing future was meant to look. But five

energy crisis. Renewables still count less than 3% of supply and

cleaner, and nuclear power is no longer the silver bullet it once

was. The Fukushima nuclear disaster in Japan has made nuclear power

was. The Fukushima nuclear disaster scandals about fake safety security

certificates have raised concerns even higher. Plans are on hold.

According to one key government adviser, South Korea's plan to get

two thirds of its electricity from nuclear power by 2030 is history. We

have two options. Call or natural gas. We have many infrastructures

for natural gas. It is a better option to import. In the longer

term, we have to think about how option to import. In the longer

term, we have to think about how much the generations will be coming.

shortage, South Korea could turn much the generations will be coming.

shortage, South Korea could turn increasingly to fossil fuels. This

electricity. Two more being built increasingly to fossil fuels. This

electricity. Two more being built next door. TRANSLATION: The current

built now comparable to the size of nuclear plants. In terms of energy

built now comparable to the size of scale. Bigger plants mean coal power

question is a sensitive one. South Korea has vowed to produce its

Cleaner types of call is one option but many believe it will prove too

expensive. Without a solution, South Korea could find itself caught

between the green economy it once did build and the energy hungry

between the green economy it once As we go into the second day of

between the green economy it once partial government shutdown in the

US, markets are staying resilient. Investors around the world seem

confident — at least for now — that this game of political brinkmanship

will be short—lived. But could this change as the October 17th debt

ceiling deadline looms? Let's get a sense of how investors in Asia are

positioning themselves. Rico Hizon is live in the Singapore business

talking to various investors and other players about this. Had they

been seeing? They're very calm about the situation. —— what have they

Japan is bucking the upward trend. The government has said it will

Japan is bucking the upward trend. ahead with an April tax increase.

Some are warning it distracts on for more than a week, the US economic

recovery could be derailed. Asia does rely on the US. It relies on

relies on the US for foreign direct investment. At the moment, these

wean themselves of this dependence, investment. At the moment, these

wean themselves of this dependence, they will experience a bit of a

In the short term, investors are Markets are mixed in Asia. The Dow

Jones and the other major markets yesterday, slightly higher. Brushing

off the fear factor, as far as the shutdown is concerned. I will see