:00:10. > :00:14.with World Business Report. Welcome. These are the day's top
:00:15. > :00:23.stories. Already unpopular. The French president is adopting
:00:23. > :00:26.austerity measures just six months before an election.
:00:26. > :00:31.Japan launches fresh measures to drive down the strong yen after a
:00:31. > :00:41.ratings downgrade. What can the advertising business
:00:41. > :00:45.
:00:45. > :00:48.tell us about the global economy? We will hear from an industry giant.
:00:48. > :00:53.Nicolas Sarkozy will meet with ministers today to finalise plans
:00:53. > :00:57.to cut the nation's deficit. The Government wants to save billions
:00:57. > :01:00.of euros over the next two years. It was spurred into action earlier
:01:00. > :01:09.this month when traders started betting that France might lose its
:01:09. > :01:13.top credit rating. France is home to some of Europe's
:01:13. > :01:16.industrial Titans. They drive the economy. But this month's figures
:01:16. > :01:20.show activity in the French manufacturing sector has contracted
:01:20. > :01:24.for the first time in more than two years. On the back of growth
:01:24. > :01:29.figures that flat line for the second quarter, it is more evidence
:01:29. > :01:35.that the eurozone's second largest economy is grinding to a halt. If
:01:35. > :01:37.revenues are falling, government -- governments must make savings.
:01:37. > :01:42.Today, President Sarkozy is announcing some of the sharpest
:01:42. > :01:49.reductions in public spending as in many years. His Cabinet will spell
:01:49. > :01:52.out additional budget savings for 2011, 10 billion euros for 2012 in
:01:52. > :01:57.order to stick to the government's deficit targets. It will mean
:01:57. > :02:02.pruning certain tax exemptions, possibly even a new taxes for the
:02:02. > :02:07.super-rich. This week, the players were given an unlikely boost from
:02:07. > :02:12.some of France's wealthiest people, including the Laura Beale areas. In
:02:12. > :02:15.a petition published in a weekly magazine, 16 company executives
:02:15. > :02:19.call for the creation of a special contribution, a tax that would
:02:19. > :02:24.target world without forcing million us to leave for overseas
:02:24. > :02:28.tax havens. No French government has announced a budget since the
:02:28. > :02:33.early 1970s. President Sarkozy is backing a constitutional change
:02:33. > :02:40.that would require future French governments to balance their
:02:40. > :02:45.budgets by law. They say this is a publicity stunt. It is never easy
:02:45. > :02:51.making cuts six months before an election. The voters don't tend to
:02:51. > :02:55.like it. But Sarkozy have an agenda. He will tell the people that the
:02:55. > :03:01.opposition are a responsible and spendthrift, hoping to show them he
:03:01. > :03:05.can make the tough decisions even in a period of that growth. -- flat
:03:05. > :03:10.growth. The Far East now. The dramatic move
:03:10. > :03:13.from Japan to relieve the pressure on its economy. Japan's big
:03:13. > :03:18.exporting companies have been suffering from the yen hitting new
:03:18. > :03:28.records. The Government has come up with a big spending plan to help
:03:28. > :03:31.
:03:31. > :03:33.out. Japan wants to drive down the yen? This sounds interesting.
:03:33. > :03:37.apart from basically intervening in the markets they are also trying
:03:37. > :03:43.their best to implement other measures to drive down the very
:03:43. > :03:48.strong yen, now trading between 76 and 77 the end to the dollar.
:03:48. > :03:55.Implementing this massive emergency credit facility to help local
:03:55. > :04:01.company's credit -- cope with the end of's recent game. The hope is
:04:01. > :04:04.that this money will make it easier for Japanese companies to buy
:04:04. > :04:09.foreign companies. The Government will be asking major financial
:04:09. > :04:13.firms to report on their dealers positions until the end of
:04:13. > :04:18.September in an attempt to curb speculation in the currency markets.
:04:18. > :04:23.These measures are being put in place after Moody's downgraded the
:04:23. > :04:29.country's credit rating for the first time since 2002. Moody's is
:04:29. > :04:39.blaming to ban -- Japan for a revolving door leadership that has
:04:39. > :04:40.
:04:40. > :04:47.slowed down the country's fiscal initiatives. The downgrade brings
:04:47. > :04:57.Moody's ratings for Japan in line with Stan -- standard and Poor's.
:04:57. > :04:58.
:04:58. > :05:02.It cut Japan's writing to a double a minus. What has put the focus on
:05:02. > :05:06.Qantas, his results have come through. What are they like? They
:05:06. > :05:12.are reporting a full-year profit that more than doubled but it was
:05:12. > :05:19.below market expectations. To improve profitability, you have the
:05:19. > :05:22.Australian carrier announcing it was making some major restructuring
:05:22. > :05:28.efforts, wanting to make new Asian airlines. One is based potentially
:05:28. > :05:34.in Japan. The other is either in Kuala Lumpur, Singapore or in China
:05:34. > :05:39.and there are major plans to cut jobs. As for rumours of a takeover,
:05:39. > :05:41.the chief executive said he had not received any takeover offers but
:05:41. > :05:47.admitted there was speculation it could be a target for private
:05:47. > :05:51.equity firms. This takeover speculation was revealed by a
:05:51. > :05:56.newspaper report after Qantas shares road -- hit near record lows
:05:56. > :06:03.this week. Thank you. The advertising agency group WPP
:06:03. > :06:09.will update the market on its half- year results. At its first quarter
:06:09. > :06:13.of date, it said revenues had risen by 7%. It also saw a strong
:06:13. > :06:21.performance in at some of its more sure markets well faster-growing
:06:21. > :06:24.areas had picked up. This is one particular execution.
:06:24. > :06:29.Whether you are selling mouthwash, bathrooms or cars, you have to
:06:29. > :06:33.think not only about the images you use all were the EU -- but about
:06:33. > :06:38.whether you are using the right channels to get your customers.
:06:38. > :06:43.There is concern that a slowdown in the US and UK would mean companies
:06:43. > :06:46.like WPP are looking elsewhere to expand their businesses. More
:06:46. > :06:50.multinationals are placing investment in the internet and the
:06:50. > :06:57.emerging markets of Brazil, Russia, India and China to combat the
:06:57. > :07:04.downturn. The DPP's strategy once the market
:07:04. > :07:08.to be the engine of growth. Agencies are also well placed to do
:07:09. > :07:14.some of the custom insights and market analytics and Digital
:07:14. > :07:19.Analysis. They had an awful lot of data that they can analyse and a
:07:19. > :07:25.useful for their clients. WPP has been profitable every year for the
:07:25. > :07:30.past five. Of the 16 billion dollar business, only around the % of that
:07:30. > :07:35.revenue comes from traditional forms of advertising. During the
:07:35. > :07:38.economic slowdown, the advertising industry declined. Agencies like
:07:38. > :07:42.this one found its clients developing building and investing
:07:42. > :07:49.in its online presence. Said that it could cash in on the rise of
:07:49. > :07:56.social media. Advertising spending on social media sites has grown by
:07:56. > :07:59.148 % over the last three years. For firms like WPP, capitalising on
:07:59. > :08:05.that growth and the potential expansion in Asia will provide a
:08:05. > :08:11.more rosy future of a UK and US market -- while the UK and US tread
:08:11. > :08:15.water. Shares in Bank of America were
:08:15. > :08:18.pummelled again during the Tuesday trading session. The bank's Chief
:08:18. > :08:22.Executive defended his company against claims it would have to
:08:22. > :08:28.write off tens of billions of dollars worth of bad debt. The bank
:08:28. > :08:31.has plenty of cash on its balance sheet. The shares have more than
:08:31. > :08:38.halved in their value. After six days of games, gold
:08:38. > :08:46.prices fell back on Tuesday. The price fell by more than $30,
:08:47. > :08:56.closing at $860. It is a temporary setback.
:08:57. > :08:58.
:08:58. > :09:05.Phones are bidding to -- for a US video servers. It is worth up to
:09:05. > :09:09.$80 billion. Google and Amazon could be interested in the business.
:09:09. > :09:14.It's take a look at the financial markets. The picture in the Far
:09:14. > :09:17.East. We saw some gains during the trading session. It appeared as if
:09:17. > :09:25.the Nikkei has shrugged off that downgrade coming through from
:09:25. > :09:35.Moody's. It is beginning to bite. Moody's also downgraded a number of
:09:35. > :09:37.
:09:37. > :09:45.Japanese banks. There is pressure coming through from the US because
:09:45. > :09:49.on Friday, we are looking ahead to what is happening in Wyoming with a
:09:49. > :09:59.gathering of the Ben Bernanke and many others. An indication of the
:09:59. > :10:02.
:10:02. > :10:06.US economy. The newspaper review is coming up.
:10:06. > :10:10.Before we look at the newspapers, for the last month or so, we have
:10:10. > :10:14.been trying to put together a map which shows wait to get a 3D signal
:10:15. > :10:18.to make a smartphone work properly. Our technology Correspondent
:10:18. > :10:27.reports. You don't tend to get a signal just
:10:27. > :10:32.yet. How is a -- your mobile signal? In a park, we are finding
:10:32. > :10:37.it a struggle to get 3D. According to away results, that is not
:10:38. > :10:41.uncommon. I caught a train to London to look for more evidence. A
:10:41. > :10:46.one-man shows that people are getting the signal must have the
:10:46. > :10:50.time but there are gaps in coverage in towns as well as the country.
:10:50. > :10:54.Many people expect they will be able to get online with their
:10:54. > :11:02.phones even on a moving train. Our map appears to show that on a large
:11:02. > :11:08.sections of this journey, that could be pretty tricky. I'd about
:11:08. > :11:15.to meet someone who had taken part in the survey. What kind of signal
:11:15. > :11:20.are you getting? Two bars. A trainee vicar has found that his
:11:21. > :11:26.smartphone is not much use without 3D. People want to be able to
:11:26. > :11:31.consume media and things like that on their mobiles. Just as much as
:11:31. > :11:35.people in cities. To cut them off from services and not provide those
:11:35. > :11:41.services seemed to perpetuate that disadvantage. The next stage in
:11:41. > :11:48.away mobile journey will see has moved to 40 networks. Will that
:11:48. > :11:52.sort out the problems faced by people living in this area? Those
:11:52. > :11:56.areas which have got reasonable coverage at the present times will
:11:56. > :12:00.get better. You'll still find a rhythm -- relatively good coverage
:12:01. > :12:04.in areas where it is limited at the present time. The hope is that our
:12:04. > :12:14.map will give the mobile networks more information on who needs a
:12:14. > :12:15.
:12:15. > :12:20.better signal. This is BBC World news. Rapturous celebrations in the
:12:20. > :12:27.central square of Tripoli. Rebels took control of Colonel Gaddafi's
:12:27. > :12:31.compound. There were similar scenes in Benghazi. Reports of sporadic
:12:31. > :12:37.fighting in Tripoli. A pro Gaddafi TV channel says he
:12:37. > :12:41.has given a defiant speech broadcast on a local radio station.
:12:41. > :12:46.He is credited as saying he withdrew from his barracks for
:12:46. > :12:51.tactical reasons. His spokesman took to the airwaves also with a
:12:51. > :12:56.stark warning for the Rebels. TRANSLATION: If the Apache strikes
:12:56. > :13:05.continue and the bombardment by the military continues, we will spread
:13:05. > :13:10.all over the streets of Tripoli and transform it into a death trap.
:13:10. > :13:13.EU countries supported by the US say they have prepared a draft
:13:13. > :13:19.resolution at the UN calling for international sanctions against the
:13:19. > :13:23.Syrian government. French diplomats said the draft has been accepted by
:13:23. > :13:26.memory -- members of these security council.
:13:27. > :13:31.A court in New York has dismissed sexual assault charges against
:13:31. > :13:41.Dominique Strauss-Kahn. Prosecutors said they could not disprove his
:13:41. > :13:42.