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Now it is time for World Business Report . | :00:00. | :00:14. | |
But after years of weak growth and a jobless rate more than double | :00:15. | :00:24. | |
is France getting the medicine it needs? | :00:25. | :00:27. | |
G7 leaders call the world economy an "urgent priority", | :00:28. | :00:31. | |
but fail to agree on co-ordinated steps to head off a crisis. | :00:32. | :00:42. | |
This is a fascinating and exciting snapshot of all the views in the | :00:43. | :01:06. | |
world of business and money. We also have some tough times for China's | :01:07. | :01:08. | |
biggest maker of PCs, Lenovo. Starting in France, where | :01:09. | :01:20. | |
pressure is mounting on the government as that Wavell strike | :01:21. | :01:22. | |
hits the country hard. The cause is | :01:23. | :01:28. | |
a controversial shake-up of labour rules aimed at making it easier and | :01:29. | :01:30. | |
cheaper to hire and fire workers. Labour unions are | :01:31. | :01:34. | |
fiercely opposed to it. But its supporters say it is vital | :01:35. | :01:38. | |
to make French business more competitive and energise | :01:39. | :01:41. | |
the country's stagnant economy. Let me give you some | :01:42. | :01:44. | |
background to this. France's unemployment rate is over | :01:45. | :01:51. | |
10%, Proof, say critics, | :01:52. | :01:52. | |
that the system needs reform. Then there is France's | :01:53. | :02:04. | |
economic growth. This graph shows how persistently | :02:05. | :02:06. | |
weak it has been The IMF says growth will improve | :02:07. | :02:08. | |
a bit this year. But it warns that the government's | :02:09. | :02:21. | |
reforms don't go far enough Our business correspondent | :02:22. | :02:24. | |
Jonty Bloom has been to Toulouse to find out why these reforms are | :02:25. | :02:30. | |
so controversial. Burning tyres and blocked roads | :02:31. | :02:43. | |
brought traffic chaos to parts of France and that was just the start. | :02:44. | :02:49. | |
It campaigners also hit electricity production and the rail network. The | :02:50. | :02:55. | |
blockade of all refineries is causing more queues at petrol | :02:56. | :02:58. | |
stations, especially in the north of France. While in town squares across | :02:59. | :03:03. | |
the country protests have been held every night for weeks. This is the | :03:04. | :03:10. | |
capital, the town hall in Toulouse. As you can see they are looking | :03:11. | :03:17. | |
forward to the Euros. But this protest goes on every night against | :03:18. | :03:21. | |
the labour reforms that the French government is proposing. We have | :03:22. | :03:25. | |
flags, food stalls and just here, about half-an-hour ago, there was a | :03:26. | :03:30. | |
large group of people about half-an-hour ago, there was a | :03:31. | :03:32. | |
large group of people having a discussion. All of a sudden they | :03:33. | :03:35. | |
stormed this it on the right of the town hall. -- this bit. | :03:36. | :03:43. | |
The protesters targeted the opera because they say it is just for the | :03:44. | :03:49. | |
rich, like this labour laws. And some trade unionists hate the | :03:50. | :03:53. | |
reforms as well. They say no discussion. That's why we are going | :03:54. | :04:01. | |
to struggle against it. Anyway, it isn't a question of negotiation. We | :04:02. | :04:09. | |
have to destroy this project. This is of course sees things | :04:10. | :04:13. | |
differently. This warehouse distributes haircare products to | :04:14. | :04:16. | |
salons across France. That could soon be hit by fuel shortages and | :04:17. | :04:22. | |
roadblocks. Action the company's Ohno believes are politically | :04:23. | :04:26. | |
driven. Andy says there is one reason there can be no compromise. | :04:27. | :04:33. | |
TRANSLATION: We are in France and I think that unfortunately we still | :04:34. | :04:37. | |
live on year of class struggles, most likely kept alive by a far | :04:38. | :04:43. | |
right ideals -- ideology that is prevalent in some areas of France. | :04:44. | :04:46. | |
That's why we have these blockades. Anything done to help this as is | :04:47. | :04:50. | |
seen as a gift to chief executives and where the interests of employers | :04:51. | :04:54. | |
are always seen as opposed to those of employees. On the surface life in | :04:55. | :04:59. | |
front is as pleasant as ever but unemployment is over 10% and much | :05:00. | :05:02. | |
higher for the young. Successive governments have tried to force | :05:03. | :05:06. | |
through reforms and fail. This time neither side seems willing to | :05:07. | :05:08. | |
compromise. We are also in Japan, | :05:09. | :05:12. | |
where leaders of the G7 group of industrialised countries are | :05:13. | :05:15. | |
wrapping up two days of talks in In their final statement | :05:16. | :05:17. | |
the leaders have said "global growth But they have failed to agree | :05:18. | :05:23. | |
on practical steps. Japanese prime minister Shinzo Abe | :05:24. | :05:33. | |
has been trying to get his fellow leaders to boost government spending | :05:34. | :05:41. | |
to kick-start the global economy. Mr Abe has been making comparisons | :05:42. | :05:47. | |
with the 2008 financial crisis But he's failed to get agreement | :05:48. | :05:49. | |
for a co-ordinated spending spree, with Germany and the UK sticking | :05:50. | :05:58. | |
firmly to the path of austerity. Asia Business Correspondent Karishma | :05:59. | :06:03. | |
Vaswani is at the G7 summit in It looked like you were in a skating | :06:04. | :06:16. | |
ring for a second! We all know, you and I said it yesterday, that | :06:17. | :06:19. | |
globally things are getting worse, not better. We note International | :06:20. | :06:24. | |
Monetary Fund has changed what it thinks the global economy will grow | :06:25. | :06:32. | |
by. The Japanese Prime Minister thinks there could be another crisis | :06:33. | :06:34. | |
around the corner. Here is the question. Why is it so hard for | :06:35. | :06:39. | |
leaders to come up with a unified approach to prevent all of that | :06:40. | :06:43. | |
happening? Well, it is pretty simple. They have different opinions | :06:44. | :06:48. | |
as to how they can go about fixing the problems in the world economy. | :06:49. | :06:53. | |
They couldn't come to an agreement because frankly they don't believe | :06:54. | :06:57. | |
in the same thing. You've got the UK and Germany saying they want fiscal | :06:58. | :07:01. | |
austerity, you have to be the structural reforms taking place, and | :07:02. | :07:06. | |
then you've got Japan, the likes of Canada, saying they need time to | :07:07. | :07:09. | |
sort this out. So it would be good if we could have a bit more of a | :07:10. | :07:14. | |
concerted effort to say that stimulus is the way to go to fix the | :07:15. | :07:18. | |
economies. They didn't do that and in fact the communique they had was | :07:19. | :07:23. | |
law and compensated. They basically say in a roundabout fashion that | :07:24. | :07:26. | |
each country should go about fixing the problems in its own individual | :07:27. | :07:31. | |
economy using flexible fiscal strategies. So basically it is up to | :07:32. | :07:35. | |
you. Each country decides how they go about fixing the problems in | :07:36. | :07:40. | |
there own economy. Quickly, it highlights Japan's situation, but | :07:41. | :07:45. | |
also for viewers around the world Mr Abe wanted to print more money and | :07:46. | :07:48. | |
get these countries to spend more money because there's more money the | :07:49. | :07:53. | |
American and European, which means they will buy more from Japan. It is | :07:54. | :07:59. | |
just that. He was also trying to build credibility here at home. But | :08:00. | :08:06. | |
if everybody in the G7 says fiscal stimulus is a great idea, he can | :08:07. | :08:09. | |
then say the critics in Japan that they have to put off the national | :08:10. | :08:12. | |
sales tax that they are planning to implement in 2017 and a have to | :08:13. | :08:17. | |
continue using the arrows of Abenomics, the plane he has in | :08:18. | :08:22. | |
Japan, which would include fiscal stimulus. He didn't get that so it | :08:23. | :08:24. | |
will be hard for him to convince critics back home. Indeed. We will | :08:25. | :08:29. | |
come back to you and talk to you soon. Thank you. | :08:30. | :08:34. | |
Let's stay in Asia now, where Chinese tech giant Lenovo is having | :08:35. | :08:36. | |
It has revealed a steep fall in revenues as, we all know, | :08:37. | :08:46. | |
the market for personal computers continues to flag. | :08:47. | :08:48. | |
But it's also having problems with smartphones. | :08:49. | :08:50. | |
Rico Hizon is following the story for us in Singapore. | :08:51. | :08:53. | |
Good to see you! I was looking at some numbers. Here is the problem | :08:54. | :09:04. | |
for Lenovo, the world's against PC makers. In the first three months of | :09:05. | :09:09. | |
this year global sales of PCs was 64 million. The same time last year it | :09:10. | :09:12. | |
was 76 million. People are buying fewer. Absolutely. We are seeing the | :09:13. | :09:20. | |
core businesses of Lenovo continuing to hurt smart phones, personal | :09:21. | :09:24. | |
computers. The smartphone struggle to keep pace with the likes of Apple | :09:25. | :09:30. | |
and other rivals in the market. Revenue from PC sales, which | :09:31. | :09:34. | |
accounts for much of its business, was down 11%. It has been impacted | :09:35. | :09:40. | |
by currency fluctuations and slumping demand in China and | :09:41. | :09:44. | |
overseas. As for the cellphones, one analyst said the company was failing | :09:45. | :09:48. | |
to snatch customers from competitors and said customers would pick Apple | :09:49. | :09:53. | |
or Samsung and if they want to buy a cheap cellphone they would rather | :09:54. | :09:59. | |
pick something else over Lenovo. So Lenovo reported a 128 million | :10:00. | :10:05. | |
dollars net loss for the year and that is compared to a net profit of | :10:06. | :10:09. | |
more than $800 million over the same period last year. On Lenovo watcher | :10:10. | :10:15. | |
says they haven't really done very well in China, but other brand names | :10:16. | :10:21. | |
are to much better. They have also announced cost-cutting measures. | :10:22. | :10:27. | |
Hopefully with these cutbacks and a restructuring of the business they | :10:28. | :10:29. | |
will be back in the black this new financial year. We will have to wait | :10:30. | :10:34. | |
and see. Thank you. I will wrap it up. Follow me on Twitter. Stage ten. | :10:35. | :10:41. | |
I will be back to take a look at some of the newspapers from around | :10:42. | :10:42. | |
the world. The criminal justice system is close | :10:43. | :10:54. | |
to breaking point according to a damning report from the | :10:55. | :10:57. | |
Public Accounts Committee. It finds the system plagued | :10:58. | :10:59. | |
by delays and inefficiencies | :11:00. | :11:03. |