:00:10. > :00:20.Turkey to escape the violence. -- that was Syria, not Libya. Now it
:00:20. > :00:21.
:00:21. > :00:30.is time for World Business Report. The headlines: Greece's debt crisis
:00:30. > :00:35.rocks world markets. Sending shares and the euro tumbling. American
:00:35. > :00:42.luggage manufacturer Samsonite fails on the Hong Kong Stock
:00:42. > :00:52.Exchange. Research in Motion, the makers of BlackBerry, struggle in a
:00:52. > :00:55.
:00:55. > :01:01.changing market. Fear is gripping financial markets says Europe faces
:01:02. > :01:06.up to the possibility of Greece to defaulting on its debt so. The
:01:06. > :01:12.failure of the Greek government to push through new austerity measures
:01:12. > :01:17.amid violence has raised alert levels. Without further funding
:01:17. > :01:23.Greece cannot make bond repayments due next month. It has caused
:01:23. > :01:30.investor confidence to drop around the world, similar to the collapse
:01:30. > :01:36.of Lehman Brothers in September 2008. The yield on the two-year
:01:36. > :01:44.bond was over 28%. Markets now put the likelihood that Greece will not
:01:44. > :01:48.repay its debts at around 74%. Credit rating agency Moody's also
:01:48. > :01:52.warns it may be downgrading its ratings on French banks because of
:01:52. > :02:00.their investments in Greece, raising fears of so-called
:02:00. > :02:08.contagion. In Asia we have seen falls following yesterday's falls.
:02:08. > :02:18.The fear is that his -- is Greece defaults it could cause panic in
:02:18. > :02:20.the market. This was yesterday's markets in Europe. We will see how
:02:20. > :02:30.markets in Europe. We will see how they start their day in around an
:02:30. > :02:39.
:02:39. > :02:45.hour-and-a-half. The euro taking another battering. We have someone
:02:45. > :02:48.from the Economist Intelligence Unit. Things seem to be
:02:48. > :02:53.accelerating now. Yesterday's disastrous day for the Greek
:02:53. > :02:58.government not helping. Prime Minister Papandreou has announced a
:02:58. > :03:05.Cabinet reshuffle and bought a little more time for his cabinet
:03:05. > :03:15.and for Greece. You think Greece will default? What are the
:03:15. > :03:21.implications? Default: Firstly, in the banking sector. French banks
:03:21. > :03:25.have been downgraded by Moody's. May be downgraded by Moody's.
:03:25. > :03:30.Contagion through the banking sector. A lot of the European banks
:03:30. > :03:33.have written down their great debt. I do not think there will be a
:03:33. > :03:43.financial crisis throughout Europe financial crisis throughout Europe
:03:43. > :03:52.if Greece to falls. Secondly, they will think: His next? BA -- the
:03:52. > :03:57.answer is Portugal, and then Ireland. They might go for a
:03:57. > :04:02.strategic default. If we cedar falls across the eurozone we may
:04:02. > :04:07.see a to unravel. Obviously Greece being a part of the eurozone means
:04:07. > :04:11.it cannot play with its currency, which could probably benefit it
:04:11. > :04:17.right now. Do you think they may choose to leave the eurozone his
:04:17. > :04:21.face takes place? I think there is a real possibility. Greece cannot
:04:21. > :04:31.devalue its currency so it is trying to do an internal
:04:31. > :04:36.
:04:36. > :04:42.devaluation, which is extremely painful. He in the meantime, the
:04:42. > :04:46.IMF is saying it probably will give its next batch of money to Greece.
:04:46. > :04:54.The EU leaders are tried to come to an agreement about their next batch
:04:54. > :05:00.of money. If Greece defaults, that all stops, doesn't it? The second
:05:00. > :05:03.that Greece defaults on its debt or restructures its dead all bets are
:05:03. > :05:08.off and it will not fulfil the conditions of its bail out added
:05:08. > :05:13.will lose access to official funded. Thank you for talking us through
:05:13. > :05:19.the implications. And of course we are keeping a close eye on what is
:05:19. > :05:29.happening in Greece. Research n Motion, the maker of BlackBerry. Is
:05:29. > :05:30.
:05:30. > :05:35.it too slow in a changing market? The company reports first-quarter
:05:35. > :05:42.results after close of business today. It has already reported that
:05:42. > :05:48.sales of its phone will be down. Before Google's Android there was
:05:48. > :05:52.the BlackBerry. The smart phone that is still the chosen device for
:05:52. > :05:57.most businesses, yet its share price tells a different story.
:05:57. > :06:04.Research n Motion, the Canadian company behind BlackBerry, has seen
:06:04. > :06:09.its share price tumbled by almost 40% since the start of this year.
:06:09. > :06:14.When they were a hot stock they were perceived as invincible
:06:14. > :06:21.because they had most of the corporate market. Once that turns
:06:21. > :06:24.it is like they fell out of love with it. BlackBerry's first tablet
:06:24. > :06:29.computer was released their earlier this year in the US to mixed
:06:29. > :06:37.reviews. But it is their devices the company has not yet launched
:06:37. > :06:41.that investors are waiting for. the horizon is operating system
:06:41. > :06:45.software which runs there tablet computer. They are supposed to
:06:45. > :06:52.bring that operating system to use their telephones some time next
:06:52. > :06:55.year. That could be a big upgrade if they achieve it. And as if that
:06:55. > :07:00.Research n Motion did not have enough on their plate, they are
:07:00. > :07:07.being sued by Dolby for using some of which audio technology without
:07:07. > :07:11.permission. The tablet may have helped to boost profits since it
:07:11. > :07:17.went on sale in spring, but if the company comes back with any bad
:07:17. > :07:22.news about its prospects prospecre price could move lower. BBC News,
:07:22. > :07:32.New York. It has been a disappointing market debut for the
:07:32. > :07:33.
:07:33. > :07:40.luggage maker her Samsonite. What has been going on? Several factors.
:07:40. > :07:47.Fragile investor sentiment and bad timing as Samsonite listed amid a
:07:47. > :07:53.slump in Hong Kong. It does not help when the benchmark Hang Seng
:07:53. > :07:58.index has declined during this period. There is also concern about
:07:58. > :08:04.high interest rates in China, debt troubles in Greece and we keep US
:08:04. > :08:09.economic gross. Hong Kong IPOs generally attract a lot of interest,
:08:09. > :08:15.but Samsonite, according to many traders, was not particularly hot
:08:15. > :08:20.among them. Despite the fall and it's frustrating day the Samsonite
:08:20. > :08:25.Chief Executive remains optimistic, saying the company plans to build
:08:25. > :08:35.its business in China, India and other parts of Asia. Waning
:08:35. > :08:35.
:08:35. > :08:39.investor at appetite has other companies also shelving IPOs.
:08:39. > :08:49.Including a Chinese auto parts company and an Australian mining
:08:49. > :08:59.company. Italian fashion house Prada is a much larger IBO at two.
:08:59. > :09:04.$6 billion. It lists on 24th June. Thank you. Let's stay with news
:09:04. > :09:11.ut on the international markets. It
:09:11. > :09:18.has been a turbulent start for Pandora. A wider sell-off in the
:09:18. > :09:25.market sent them tumbling. The company is valued at $2.8 billion
:09:25. > :09:30.or 20 times last year's sales. Pandora is yet to make a profit.
:09:30. > :09:36.Some investors are calling the rash of flirtations with internet
:09:36. > :09:44.companies a repeat of the dot com bubble. Acomb Peter that almost