24/08/2011 World Business Report

with World Business Report. Welcome. These are the day's top

stories. Already unpopular. The French president is adopting

austerity measures just six months before an election.

Japan launches fresh measures to drive down the strong yen after a

ratings downgrade. What can the advertising business

tell us about the global economy? We will hear from an industry giant.

Nicolas Sarkozy will meet with ministers today to finalise plans

to cut the nation's deficit. The Government wants to save billions

of euros over the next two years. It was spurred into action earlier

this month when traders started betting that France might lose its

top credit rating. France is home to some of Europe's

industrial Titans. They drive the economy. But this month's figures

show activity in the French manufacturing sector has contracted

for the first time in more than two years. On the back of growth

figures that flat line for the second quarter, it is more evidence

that the eurozone's second largest economy is grinding to a halt. If

revenues are falling, government -- governments must make savings.

Today, President Sarkozy is announcing some of the sharpest

reductions in public spending as in many years. His Cabinet will spell

out additional budget savings for 2011, 10 billion euros for 2012 in

order to stick to the government's deficit targets. It will mean

pruning certain tax exemptions, possibly even a new taxes for the

super-rich. This week, the players were given an unlikely boost from

some of France's wealthiest people, including the Laura Beale areas. In

a petition published in a weekly magazine, 16 company executives

call for the creation of a special contribution, a tax that would

target world without forcing million us to leave for overseas

tax havens. No French government has announced a budget since the

early 1970s. President Sarkozy is backing a constitutional change

that would require future French governments to balance their

budgets by law. They say this is a publicity stunt. It is never easy

making cuts six months before an election. The voters don't tend to

like it. But Sarkozy have an agenda. He will tell the people that the

opposition are a responsible and spendthrift, hoping to show them he

can make the tough decisions even in a period of that growth. -- flat

growth. The Far East now. The dramatic move

from Japan to relieve the pressure on its economy. Japan's big

exporting companies have been suffering from the yen hitting new

records. The Government has come up with a big spending plan to help

out. Japan wants to drive down the yen? This sounds interesting.

apart from basically intervening in the markets they are also trying

their best to implement other measures to drive down the very

strong yen, now trading between 76 and 77 the end to the dollar.

Implementing this massive emergency credit facility to help local

company's credit -- cope with the end of's recent game. The hope is

that this money will make it easier for Japanese companies to buy

foreign companies. The Government will be asking major financial

firms to report on their dealers positions until the end of

September in an attempt to curb speculation in the currency markets.

These measures are being put in place after Moody's downgraded the

country's credit rating for the first time since 2002. Moody's is

blaming to ban -- Japan for a revolving door leadership that has

slowed down the country's fiscal initiatives. The downgrade brings

Moody's ratings for Japan in line with Stan -- standard and Poor's.

It cut Japan's writing to a double a minus. What has put the focus on

Qantas, his results have come through. What are they like? They

are reporting a full-year profit that more than doubled but it was

below market expectations. To improve profitability, you have the

Australian carrier announcing it was making some major restructuring

efforts, wanting to make new Asian airlines. One is based potentially

in Japan. The other is either in Kuala Lumpur, Singapore or in China

and there are major plans to cut jobs. As for rumours of a takeover,

the chief executive said he had not received any takeover offers but

admitted there was speculation it could be a target for private

equity firms. This takeover speculation was revealed by a

newspaper report after Qantas shares road -- hit near record lows

this week. Thank you. The advertising agency group WPP

will update the market on its half- year results. At its first quarter

of date, it said revenues had risen by 7%. It also saw a strong

performance in at some of its more sure markets well faster-growing

areas had picked up. This is one particular execution.

Whether you are selling mouthwash, bathrooms or cars, you have to

think not only about the images you use all were the EU -- but about

whether you are using the right channels to get your customers.

There is concern that a slowdown in the US and UK would mean companies

like WPP are looking elsewhere to expand their businesses. More

multinationals are placing investment in the internet and the

emerging markets of Brazil, Russia, India and China to combat the

downturn. The DPP's strategy once the market

to be the engine of growth. Agencies are also well placed to do

some of the custom insights and market analytics and Digital

Analysis. They had an awful lot of data that they can analyse and a

useful for their clients. WPP has been profitable every year for the

past five. Of the 16 billion dollar business, only around the % of that

revenue comes from traditional forms of advertising. During the

economic slowdown, the advertising industry declined. Agencies like

this one found its clients developing building and investing

in its online presence. Said that it could cash in on the rise of

social media. Advertising spending on social media sites has grown by

148 % over the last three years. For firms like WPP, capitalising on

that growth and the potential expansion in Asia will provide a

more rosy future of a UK and US market -- while the UK and US tread

water. Shares in Bank of America were

pummelled again during the Tuesday trading session. The bank's Chief

Executive defended his company against claims it would have to

write off tens of billions of dollars worth of bad debt. The bank

has plenty of cash on its balance sheet. The shares have more than

halved in their value. After six days of games, gold

prices fell back on Tuesday. The price fell by more than $30,

closing at $860. It is a temporary setback.

Phones are bidding to -- for a US video servers. It is worth up to

$80 billion. Google and Amazon could be interested in the business.

It's take a look at the financial markets. The picture in the Far

East. We saw some gains during the trading session. It appeared as if

the Nikkei has shrugged off that downgrade coming through from

Moody's. It is beginning to bite. Moody's also downgraded a number of

Japanese banks. There is pressure coming through from the US because

on Friday, we are looking ahead to what is happening in Wyoming with a

gathering of the Ben Bernanke and many others. An indication of the

US economy. The newspaper review is coming up.

Before we look at the newspapers, for the last month or so, we have

been trying to put together a map which shows wait to get a 3D signal

to make a smartphone work properly. Our technology Correspondent

reports. You don't tend to get a signal just

yet. How is a -- your mobile signal? In a park, we are finding

it a struggle to get 3D. According to away results, that is not

uncommon. I caught a train to London to look for more evidence. A

one-man shows that people are getting the signal must have the

time but there are gaps in coverage in towns as well as the country.

Many people expect they will be able to get online with their

phones even on a moving train. Our map appears to show that on a large

sections of this journey, that could be pretty tricky. I'd about

to meet someone who had taken part in the survey. What kind of signal

are you getting? Two bars. A trainee vicar has found that his

smartphone is not much use without 3D. People want to be able to

consume media and things like that on their mobiles. Just as much as

people in cities. To cut them off from services and not provide those

services seemed to perpetuate that disadvantage. The next stage in

away mobile journey will see has moved to 40 networks. Will that

sort out the problems faced by people living in this area? Those

areas which have got reasonable coverage at the present times will

get better. You'll still find a rhythm -- relatively good coverage

in areas where it is limited at the present time. The hope is that our

map will give the mobile networks more information on who needs a

better signal. This is BBC World news. Rapturous celebrations in the

central square of Tripoli. Rebels took control of Colonel Gaddafi's

compound. There were similar scenes in Benghazi. Reports of sporadic

fighting in Tripoli. A pro Gaddafi TV channel says he

has given a defiant speech broadcast on a local radio station.

He is credited as saying he withdrew from his barracks for

tactical reasons. His spokesman took to the airwaves also with a

stark warning for the Rebels. TRANSLATION: If the Apache strikes

continue and the bombardment by the military continues, we will spread

all over the streets of Tripoli and transform it into a death trap.

EU countries supported by the US say they have prepared a draft

resolution at the UN calling for international sanctions against the

Syrian government. French diplomats said the draft has been accepted by

memory -- members of these security council.

A court in New York has dismissed sexual assault charges against

Dominique Strauss-Kahn. Prosecutors said they could not disprove his