:00:03. > :00:13.Now for the latest financial news, with Tania Beckett, and World
:00:13. > :00:16.Business Report. Hello, welcome to World Business
:00:17. > :00:24.Report. Hear are the headlines - fears that
:00:24. > :00:26.the engine of Europe's growth is slowing. German GDP numbers are
:00:26. > :00:31.dropping. Making the eurozone work. France
:00:31. > :00:36.and Germany need to look at the solutions to the region's debt
:00:36. > :00:46.crisis. Rico Hizon in Australia. Qantas is set to overhaul its
:00:46. > :00:46.
:00:46. > :00:51.international operations, with 1,000 jobs at risk.
:00:51. > :00:54.Hello, there. More evidence will emerge today about the scale of the
:00:55. > :00:58.economic slowdown in Europe. Germany and Spain are both expected
:00:58. > :01:02.to announce that growth during the second quarter was down on the
:01:02. > :01:05.previous three months. Analysts will be particularly
:01:05. > :01:09.worried about Germany's performance, as much as Europe has been relying
:01:09. > :01:14.on the strength of its economy. They are predicting German growth
:01:14. > :01:18.will be down from 1.5% to just half a percent. Healthy German exports
:01:18. > :01:21.have not only been driving its own economy but powering what little
:01:21. > :01:26.growth there has been throughout the rest of Europe too. But
:01:26. > :01:31.worldwide demand is not what it was, so the German growth story may be
:01:31. > :01:37.changing direction and losing If we have a firm strong euro as
:01:37. > :01:41.well, which is not helping matters at all. When demand slows and the
:01:41. > :01:45.exchange rate remains fairly uncompetitive, that is also going
:01:45. > :01:49.to take the edge off industrial sector demand.
:01:49. > :01:52.Even before today, the Spanish economy was already weak, with
:01:52. > :01:56.little sign that the country's massive unemployment problem is
:01:56. > :02:00.going to improve. The start of the year, many Spaniards kept spending
:02:00. > :02:04.but that can't continue. Many analysts fear the weakness of
:02:04. > :02:09.Spain's export industries could lead it into a second recession,
:02:09. > :02:13.which will make it harder to reduce its debt. Even if it doesn't fall
:02:13. > :02:16.back into recession, it will not see the strong growth that the
:02:16. > :02:22.Government is banking on, which means it will struggle to bring its
:02:22. > :02:26.budget deficit down and calm the market fears. Last week, France,
:02:26. > :02:28.the eurozone's second largest economy, announce growth for the
:02:28. > :02:31.second quarter. But the real shadow hanging over Europe is a
:02:31. > :02:39.possibility of another recession in the United States in which case
:02:39. > :02:43.today's figures have plenty of scope to get worse.
:02:43. > :02:50.German Government is posing a big increase in the centralisation of
:02:50. > :02:54.economic policy across the eurozone. The countrys Finance Minister and
:02:54. > :02:58.vice Chancellor told the BBC there should be a central authority to
:02:58. > :03:06.oversee the economies of member countries.
:03:06. > :03:10.If one member state failed these tests we need to - we need a maybe
:03:10. > :03:14.special institution which has the possibility to make some kind of
:03:14. > :03:21.assumptions to the member states. You are talking about a central
:03:21. > :03:29.government, really, so what kind of powers would it have? My idea of a
:03:29. > :03:33.stability council is not to have a permanent government on economic
:03:33. > :03:40.issues. I think it is only in the situation of a crisis, if a member
:03:40. > :03:48.state is in difficulties because of failing these tests for
:03:48. > :03:53.competitiveness. So - but you are right, you need some instruments to
:03:53. > :03:58.help the member states in difficulties. Maybe you can help to
:03:58. > :04:02.set special rules for the economy or the labour market or so on.
:04:02. > :04:08.German taxpayers have accepted bailout 1, bailout 2. Will they
:04:08. > :04:16.accept bailout 3, 4, 5 - who knows how many? I think the people were
:04:16. > :04:24.asked what do you do in the long term? Will you have a security
:04:24. > :04:27.package, 3, 4, 5, 6 or 7, or will you change the structures in the
:04:27. > :04:35.eurozone in the direction to more stability? I think if they see that
:04:35. > :04:38.we will go to more stability in the eurozone, they will accept our
:04:38. > :04:42.short-term activities, because they see the long-term activities are
:04:42. > :04:48.very good, very good for the eurozone, for Europe and the people
:04:48. > :04:54.in Germany as well. Sus well. Very sure. Will the euro exist in
:04:54. > :05:01.five years' time? Its present form? We will have the euro, stay with
:05:01. > :05:10.the euro, yes and we have to implement the special rules so that
:05:10. > :05:16.we can be sure that we have the union.
:05:16. > :05:19.Well, the French President Nicolas Sarkozy and the German Chancellor
:05:19. > :05:25.Angela Merkel meet in Paris later today to disday to diso make the
:05:25. > :05:29.eurozone work more effectively. Germany's crossed speculation that
:05:29. > :05:35.they will be joining the debts of the 17 eurozone members. The idea
:05:35. > :05:41.is gaining ground, unlikely to go away. It has the support from Italy,
:05:41. > :05:45.Greece, Belgium and Luxembourg. This deepeniis deepenie crisis
:05:45. > :05:48.started off with smaller smaller economies but it got bigger and
:05:48. > :05:52.threatening to involve the second largest country in the eurozone,
:05:52. > :05:55.France. That is why President Sarkozy is keen to end the
:05:55. > :06:01.speculation surrounding his banks and country when he meets Angela
:06:01. > :06:06.Merkel on Tuesday in Paris. Apart from temporary measures such as a
:06:06. > :06:15.ban on short-selling, many people believe the only long-term solution
:06:15. > :06:20.is the creation of euro bonds. IOU - you give me money, I will
:06:20. > :06:23.repay you by at a certain date and rate of interest.
:06:23. > :06:27.Each individual country is responsible for their own bonds in
:06:27. > :06:30.the eurozone, if there was a euro bond, then the 17 countries using
:06:30. > :06:35.the euro would be collectively guaranteeing each of those bonds.
:06:35. > :06:39.It is good for bankrupt Greece, but not so good for prudent and
:06:39. > :06:48.economically sound Germany. Think of it in terms of of a marriage.
:06:48. > :06:53.German has to have asurity not only for its's own debts but partner
:06:53. > :06:59.debts. It didn't sign up to that but now it is finding out about the
:06:59. > :07:03.debts it didn't know about. Euro bonds might only be the start. Many,
:07:03. > :07:08.including Britain's Finance Minister, George Osbourne, fear the
:07:08. > :07:12.eurozone ultimately needs full fiscal union, where even tax rates
:07:12. > :07:19.are decided centrally instead of by individual countries.
:07:19. > :07:22.But the euro bond cannot happen without Germany, whose Finance
:07:22. > :07:28.Minister ruled out until either eurozone countries gave up control
:07:28. > :07:33.of their own taxation and spending powers. It would be a political hot
:07:33. > :07:37.potato, a dilemma ruffling featers around the continent.
:07:37. > :07:40.If a messy break-up of the euro is the alternative, who knows what
:07:40. > :07:43.monumental decisions will be taken and soon.
:07:43. > :07:50.Major job losses have been announced at the Australian airline
:07:50. > :07:54.Qantas. For the details, rick co is in the BBC's office, Singapore.
:07:54. > :07:58.This is a move to the East? Yes, that is right, right here in the
:07:58. > :08:02.backyard. The carrier plans to undertake a
:08:02. > :08:08.wide-ranging shake-up of its international business operation
:08:08. > :08:13.and to change its Qantas - it could put up to 1,000 jobs at risk, which
:08:13. > :08:18.will basic involve the retirement of older planes, major changes to
:08:18. > :08:21.the international networks and acquisition of jets. The airline
:08:21. > :08:26.faces a possible escalation of industrial action over this plan,
:08:26. > :08:30.with trade unions opposed to any move by Qantas to relocate its
:08:30. > :08:35.international operations off-shore. To keep the international
:08:35. > :08:41.operations viable, Qantas plans to set up basically two new Asia-
:08:41. > :08:45.folked airlines, one is a premium Asian carrier, based either here in
:08:45. > :08:50.Singapore, Kuala Lumpur or in China. The other is the creation of a
:08:50. > :08:56.Japanese low-cost carrier. Well, Australia's aircraft engineers
:08:56. > :08:59.union reacted swiftly at this news. Threatening industrial action
:08:59. > :09:06.within two weeks and considering a court challenge on grounds that
:09:06. > :09:11.Qantas's plan is in breach of terms of its privatisation plans in the
:09:11. > :09:17.early 1990s. You have the markets cheering this news of Qantas
:09:17. > :09:21.reorganisation, which has shares up more than 4% in Sydney trading.
:09:21. > :09:25.Let's take a look at the markets. Certainly, now, the Wall Street has
:09:25. > :09:29.had three days of gains. Some of that volatility appears to be
:09:29. > :09:32.coming out of the markets at the moment. This is what is happening
:09:32. > :09:36.at Asia. The German growth figures - lack
:09:36. > :09:38.thereof, really, half a percent - are going to influence the markets.
:09:38. > :09:42.Everybody at the moment is looking for further evidence that there
:09:42. > :09:52.will be a slowdown later in the year. That is the big concern. That
:09:52. > :09:59.
:09:59. > :10:02.is what is happening. Now for a look at some more news
:10:02. > :10:05.from across the UK. Following the riots across England, Prime
:10:05. > :10:08.Minister, David Cameron, has declared war on gangs and says
:10:08. > :10:11.stamping them out should be a national priority.
:10:11. > :10:16.As Jenny Hill reports, many groups have been working with young people
:10:16. > :10:20.for years to try to steer them away from violence.
:10:20. > :10:25.Violence on the streets of West Yorkshire. These pictures were
:10:25. > :10:29.taken last week as rye tkwrooting and looting continued in London,
:10:29. > :10:32.Birmingham and Manchester. 30 people were arrested in Manchester
:10:32. > :10:36.and Huddersfield. The part played by young people in
:10:36. > :10:42.last week's riots is the focus of intense debate. Why were they
:10:42. > :10:44.there? How can they be stopped from doing it again?
:10:44. > :10:50.At this conservation centre in Leeds, they think they have at
:10:50. > :10:53.least some of the answers. We met Danny here, cleaning the pond he
:10:53. > :10:58.helps to build. His antisocial and criminal behaviour meant he was
:10:58. > :11:02.repeatedly excluded from school. Several years on, he is unemployed
:11:02. > :11:09.but he is gaining skills, confidence and inspiration.
:11:09. > :11:13.It gives you something to do to. Do it inspires people as well.
:11:13. > :11:16.Not far away, they will tell you that sport can make the difference.
:11:16. > :11:19.We joined a training session for these youngsters - it is about
:11:19. > :11:24.football, but also about keeping them off the streets and away from
:11:24. > :11:31.gang culture. And if the Government has its way,
:11:31. > :11:35.you are likely to see more of this. Project Matrix in Manchester was
:11:35. > :11:39.set up to tackle criminal gangs. It has had success and secured major
:11:39. > :11:42.convictions. But it is only likely to form part of policy to deal with
:11:42. > :11:46.street crime. It is more than a week since the first riots broke
:11:46. > :11:56.out. Communities have cleared up, offenders are being punished. But
:11:56. > :12:05.
:12:05. > :12:11.the task of tackle the root causes You are watching BBC World News.
:12:11. > :12:14.The headlines - the French President, Nicolas Sarkozy, and
:12:14. > :12:20.Angela Merkel, are preparing for a crucial meeting to discuss the
:12:20. > :12:24.ongoing eurozone debt crisis. The difficulties in the
:12:24. > :12:29.communicating the agreement to the markets and for the citizens. I
:12:29. > :12:35.think experience has really shown that we need to stand ready to
:12:35. > :12:38.adapt our crisis management tools to preferably ahead and to be
:12:38. > :12:41.credible and effective. A man has been arrested in the United States
:12:41. > :12:46.in connection with an incident in the Australian city of Sydney
:12:46. > :12:51.earlier this month, when a fake bomb was fastened around the neck
:12:51. > :12:54.of an 18-year-old girl. The victim, Madeline Pulver, had to wait ten
:12:55. > :12:58.hours before the experts removed the device. Thousands of angry
:12:58. > :13:05.protesters have gathered in Canberra to demonstrate against
:13:05. > :13:10.Government proposals for a carbon tax to kerb Grecian emissions. The
:13:10. > :13:15.plans would - kerb greenhouse gases emissions.
:13:15. > :13:18.Indian police have detained a man to stop him starving to death.
:13:18. > :13:24.The Prime Minister promised to crack down on corruption, which has
:13:24. > :13:28.become a major issue in the country. It is time for our newspaper review.
:13:28. > :13:34.We look at the stories making headlines around the world. Le
:13:34. > :13:38.Figaro, and the upcoming eurozone crisis summit in Paris. The two
:13:38. > :13:41.leaders are meeting to try to safeguard the euro. Both say they