18/03/2014 World Business Report

levels. City authorities say it had been successful.

Those are the latest headlines from BBC world News.

For the latest financial news, here's Sally.

Toyota meets with government officials in India as the pay

dispute at its plants near Bangalore gets nasty.

Undeterred, the Kremlin 's set to win Crimea despite sanctions from

the West. We assess their impact. Hello and welcome. Also in the

programme, a special report on the Turkish economy under pressure as a

US Federal reserve reigns in stimulus. First, Toyota's Indian

subsidiary will meet today with the state government in an attempt to

end an industrial dispute that has dragged on for ten months. On

Monday, the Japanese car`maker halted production at its two

factories just outside Bangalore, announcing a lock`out of 6400

workers from its two assembly plans. Toyota claims some employees

have threatened supervisors and resorted to deliberate stoppages.

Taser has set down as me fracturing plant is located near Bangalore in

southern India. They said in a statement that in the last 25 days,

a section of employees had disrupted this and stop production lines. This

happened after the management and labour unions and local government

failed to reach an agreement over salaries. The company added the

company will Lott result of a loss of 7000 units per day. At the

moment, it is not clear when the management plan to resume

operations. India is not a huge contributor in terms of sales and

revenues but theatre, but it is a significant market against is

growing at a rapid pace. The firm has invested millions of dollars

over the last two years to expand as manufacturing presence in the

country. Totally about Labour unrest, industry here is used to it.

In 2012, and that the Japanese firm, Suzuki motors, faced huge

Labour unrest, which became violent, leaving one person dead and nearly

100 injured. The company had to shut down its plan for several weeks,

resulting in a loss of production of nearly 250 million US dollars.

Activists and labour unions here alleged that a lot of auto companies

exploit contract workers by paying them less competitive permanent

employees. The companies, and the other hand, have been hiring more

contract workers to cut costs, the Indian auto market has been hit by a

slowdown for the last couple of years.

As soon as we get development on the talks between the local government

there and Toyota, we will update you on BBC world News. Let's now focus

on another big name in the car industry, America's largest

car`maker, General Motors. It has be called another 1.5 million vehicles,

this time with problems related to faulty airbags, brake pipes and

other components across several models. It comes on top of a recall

of 1.6 million cars just last month. It will cost nearly $300

million in the first quarter this year to repair these cars, the boss

of General Motors, Mary Barra, a village that the company fell short

in catching faulty ignition switches directly linked to 12 deaths,

admitting "terrible things happened" . Something wrong with our

process in this instance, and terrible things happen. As a member

of the GM family, and a mother with a family of my own, this really

heads home for me. We have apologised, but that is just one

step in the journey to resolve this. Tensions between Russia and the West

are heating up, after Europe and the United States issued lists of

Russian individuals subject to Visa and is an asset seizures. The move

did little to deter Russian President Vladimir Putin, who has

formally recognised by near as an independent state. So what, if

anything, can be done to deter the Russian president from annex in

Crimea? As should the EU go further with sanctions, or will it be too

costly? I will speak to the CEO and co`founder of the investment fund

Hermitage Capital Management Title. He Is No Stranger To Russian

Politics, Having Lived There For Ten Years. He Was Blacklisted By The

Russian Government And Denied Entry To The Country. He Has Been

Campaigning For Sanctions For Three And A Half Years Now. Hello, Bill.

I'm Sure You Have Watched This Story Very Carefully Indeed. Sanctions

Have Now Been Imposed, But It Would Seem The Impression We're Getting

From Moscow Is That They Are Not Fazed. Yes, It Is A Very Fluid

Situation. The Us And Have Only Had Ten Days To Come Up With This

Policy, So They Came Up With A Very Short Sanctions List Which

Absolutely Does Not Faze Russia Or Putin, Because It Does Not Touch His

Own Personal Interests. I Think It Is Fluid Because, First Of All,

Russia Has A Lot More Actions To Take. I Think They Are Going To

Annex Crimea, And They Could Easily Then Start Working On Eastern

Ukraine. I Would Expect This Is Just The First In A Number Of Steps That

Eu And The Us Will Take. I Think The Sanctions List Will Grow, And I

Think We Will See More Escalation Of This Whole Situation. So You Don't

Believe This Can Be Solved In The Near Future In A Diplomatic Way?

Well, Diplomacy Has Already Failed. Diplomacy Is Talking Nicely To

Russia And Saying, Please Don't Invade Crimea. Talking Nicely

Doesn't Work With A Country Like Russia, Which Effectively Operate

With The Power Of The Boot And Not The Power Of The Tongue. We're Now

In A Situation Where They Have Forcibly Taken Over Another Country,

and talking nicely didn't work, so sanctions are the next step. The

sanctions are very minor in terms of the number of people. The concept of

the sanctions is not mine. Going after assets and visas of top

officials at the Reading to do, it is just a question of who is on the

list. As far as I understand it, so far the list has been winnowed down

quite dramatically in America and Europe because they were scared.

They can be scared, because it will be a lot more costly to have a

military intervention in the future if Russia keeps escalating, rather

than getting to now be targeted sanctions. But on the other hand,

Russia would say that the Ukrainian government is illegitimate, it

ousted a legitimate elected leader, and the people of Crimea voted, they

had a referendum, and their future, as opposed to Russia taking over a

country as it worth. So you feel it will escalate further in terms of

sanctions and their ability to change the situation. What about

sanctions and companies, the likes of Gazprom and other big players?

Will that have more of an impact? I think the impact of that will be

that the Russians will then sanction western companies, and I don't think

that at this point in time, sanctions are effectively like a

cancer drug. It used to be Wendy would treat cancer, you'd almost

have to kill the patient to kill the cancer. You can now go after

specific individuals making the decisions by doing targeted as

opposed to broad sanctions. Brought sanctions against Russia would be

met with broad sanctions against the West, and we will all lose. If we do

targeted sanctions against the people in the Putin regime who are

responsible, they all have a lot of money. It is not like the Soviet

days. Those guys all have a lot of money, a lot of money in the west,

you can see it in London and in France. If you go after the money,

the real people, a real big list, of targeted sanctions, that will touch

their interests and stop them from going further into Ukraine. We'd

appreciate your time. Interesting perspective on what is going on in

Ukraine, Crimea, at the moment. Let's now move on.

The US central bank, the Federal reserve, meets for the first time

under its new chair, and global markets are again in turmoil in

anticipation that cash injections from the Fed will be cut back

burner. The so`called tapering has already led to investors fleeing

emerging markets. Our chief business, Spondon has been in Turkey

to find out who is really to blame for their economic woes and whether

the country is on the brink of another financial crisis.

Turkey has one of the best current account deficits among emerging

economies. That means that it allows more than it earns on its exploits

and on its overseas investments. As a result, Turkey is a lot of money

to foreigners. Foreign debt is equal to 50% of GDP, which is a risky

level. The Fed has cut back on cheap cash injections. That cash had been

going to Turkey and other emerging economies. As the money leaves, the

lira has weakened, making you harder to repay the debt. To keep the money

in the Turkish central bank at higher rates, now in double digits.

Needless to say, seeing rates go up by such a magnitude would be a shock

to anyone with a mortgage or a business loan. And that is why, when

the money leaves, it can hurt growth. But even worse, if the

country can't repay 's debts, then default and crisis loomed. Linda is

in Turkey at the moment, while she was there, she caught up with the

finance minister to talk about the outlook for the country. We will

have the full interview later on World Business Report.

The boss of Twitter, Dick Costello, has embarked on his first visit to

China, sparking speculation, as you can imagine, that the social

networking site is hoping to mark a return to the Chinese market.

Twitter was banned in China after being blocked by sensors in 2009.

Nice to see you again. What are they saying about this visit? You are

right, Dick Costello is on what the company describes as a personal

tour, but no one thinks he is therefore the sites and the

dumplings. Twitter has been blocked by Chinese censors for the past

three years, so as soon as there was news of the body's top chief

executive is there in meeting with government officials in Shanghai,

everyone is very excited, seeing it as a pointer to Twitter's possible

ambitions in China, and when you look at that market, it is very

attractive through business like Twitter, with 600 million internet

users. But those users don't always have a free rein. If you think about

Google, and their withdrawal from the mainland and 2010, it is also

worth noting that Dick Costello himself as also been quoted as

saying that while he would love to run Twitter in China, he won't

sacrifice principles to do it. Even though it is officially banned,

Twitter actually has a small but active user base in China. The

dissident artist Highway Way has tweeted more than 105,000 times, and

even the state`run news agency has a Twitter account with 40,000

followers. So, you can get around the so`called great firewall of

China, even if Twitter is not there and officially approved. Thank you

very much indeed. That is all from us. I will see you soon as we talk

you through the papers. Stay with us.

Thank you very much. The government has set out plans to increase the

help that is up as parents with the cost of childcare. From the

automatic sea, the Prime Minister and Deputy Prime Minister say that

families with children under the age of 12 where both parents work will

be offered up to ?2000 of state support per child per year. Labour

says the policy is too little, too