:00:03. > :00:13.The eyes of the latest headlines. - - those are the latest headlines.
:00:13. > :00:16.
:00:16. > :00:21.Now it is time for World Business Report. The headlines: Italy test
:00:21. > :00:26.the bond markets one day on from dumping key parts of its austerity
:00:26. > :00:30.plan. Looking for volume, Glory Hole's investors wait to find out
:00:30. > :00:39.if the world's biggest cut -- cosmetics group can continue its
:00:39. > :00:47.sales. In Chinese investors plan to buy land in either -- Iceland is
:00:47. > :00:52.causing controversy. It was always going to be a big
:00:52. > :00:57.test of the bond markets. Italy is selling between eight and 6 billion
:00:57. > :00:59.euros of long-term debt. It is the first such auction since the
:00:59. > :01:02.European Central Bank began buying Italian bonds on the secondary
:01:02. > :01:07.market earlier in the month in order to force down the interest
:01:08. > :01:11.rate demanded by investors. The ECB is barred from bright -- buying
:01:11. > :01:14.directly from the Italian government, the sale is the first
:01:14. > :01:19.chance to see whether its assets will cause the borrowing costs to
:01:19. > :01:23.us all. It is unfortunate timing. The government rolled back on its
:01:23. > :01:30.austerity programme. Ministers dropped a new tax on higher earners,
:01:30. > :01:39.scaled back cuts to government funding and made no announcement on
:01:39. > :01:44.the VAT a sales tax. We speak to the head of global research at a
:01:44. > :01:48.bank. Let's talk about investors' confidence in Italy. Going to the
:01:48. > :01:53.bond market, rolling back on those austerity measures. That does not
:01:53. > :01:59.exactly inspire confidence. absolutely doesn't. It was always
:01:59. > :02:03.going to be in the detail. It suggests it will be a difficult run.
:02:03. > :02:13.The Italian government has been changing its plans. The plan was
:02:13. > :02:16.
:02:16. > :02:21.brought together in just a few days. The ECB will be a backstop. The
:02:21. > :02:26.plan still needs approval. It is not expected to come online until
:02:26. > :02:31.early October, if at all. In that grand bargain, Italy's side would
:02:31. > :02:40.be austerity measures. They seem to be reneging on that. It is quite
:02:40. > :02:46.convoluted. Tax increases will still be 45 billion. It is short on
:02:46. > :02:51.detail. How will they achieve it when part of it is abolishing
:02:51. > :02:57.government systems. It requires a two-thirds majority. In some ways
:02:57. > :02:59.it really is saying that they have to look at the austerity measures.
:02:59. > :03:05.They were cobbled together. The important thing is to kick the
:03:05. > :03:13.Government going. Having an election would create more on --
:03:13. > :03:20.uncertainty. That is true. If you are a business in Italy you have
:03:20. > :03:24.seen an overhaul three times. That is difficult. Think constructively.
:03:24. > :03:28.One of the be problems in Italy has been a lack of structural reforms
:03:28. > :03:32.in the past decade. It would be encouraging if there was some
:03:32. > :03:37.progress in that area. Talks have not been focused on that. Where
:03:37. > :03:41.does it put the ECB? It made a deal with Italy. Italy seems to have
:03:41. > :03:45.reneged on the deal. Where does it put the ECB now? In a difficult
:03:45. > :03:51.spot. It is dangerous to assume the ECB would just be standing around
:03:51. > :03:56.every corner. This is the Europe's back. When the heat goes up
:03:56. > :04:03.massively, they will stand there. They will not let the 4th. But they
:04:03. > :04:06.are going to facilitate a number of crisis to push Polly's made --
:04:06. > :04:16.policy makers to take difficult decisions. Do not assume they will
:04:16. > :04:18.
:04:18. > :04:22.be every where. Thank you. While the eurozone
:04:22. > :04:25.continues to struggle, Brazil is taking steps to protect itself
:04:25. > :04:34.against any collateral damage. To do so the government is increasing
:04:34. > :04:39.the tabards for its budget surplus by $6.2 billion. The savings will
:04:39. > :04:41.be made by cutting public spending. The finance minister it says it
:04:42. > :04:47.should make far -- interest cuts possible.
:04:47. > :04:52.Greece is to name and shame companies suspected of tax evasion.
:04:52. > :04:56.The Finance Minister says companies accused of failing to pay sums of
:04:56. > :05:00.over $218,000 will be identified on a website. He says there are plans
:05:00. > :05:04.to name suspected individuals one's privacy protection officials have
:05:04. > :05:07.been advised. The effort is designed to cut the spending
:05:07. > :05:12.deficit as part of the country's bail-out deal.
:05:12. > :05:16.Indeed a's economy is expected to have grown at its slowest pace
:05:16. > :05:24.between the months of April and June. The GDP update is due out in
:05:24. > :05:31.one hour. It dark -- he is expected that it will be expanded by 7.6 %.
:05:31. > :05:36.That is below the forecast. The shortfall is being linked to a
:05:36. > :05:44.slowdown in manufacturer gross and lacklustre consumption data.
:05:44. > :05:49.-- manufacturing growth. Loreal's is expecting a 13% rise
:05:49. > :05:53.for the first six months. The group has bucked the downturn and with
:05:53. > :05:58.one minor exception, reported a rise in sales for every period
:05:58. > :06:08.since 2005. But while the public appear to love its products,
:06:08. > :06:08.
:06:08. > :06:11.advertising watchdogs are proving harder to please. Cosmetic
:06:11. > :06:18.companies, the lorry of strategy has been to sell these luxury
:06:18. > :06:23.brands in the Max market. In the last year, Laurier group saw an
:06:23. > :06:27.increase in profits of over 10%. Analysts put this down to increase
:06:28. > :06:32.in sales in emerging markets like East Asia as well as the so called
:06:32. > :06:37.lipstick affect. People's apparent tendency to treat themselves to
:06:37. > :06:43.more little items of luxury during a downturn. But in the latest
:06:43. > :06:48.quarter, growth in sales has slowed to under 5% per annum. Sales in the
:06:48. > :06:53.luxury end I doing quite well. Sales in the consumer and
:06:53. > :06:57.professional products are a little bit lower. It feels like, like any
:06:57. > :07:05.large globally distributed brand, they will be Fokker's of
:07:05. > :07:11.hyperactivity. -- there will be pockets of hyperactivity. It looks
:07:11. > :07:17.like it is lower than expected. Last month it had to withdraw to
:07:17. > :07:21.mac and voter must -- advertisements in the UK. The
:07:21. > :07:24.Advertising Standards Agency said their images had been overly
:07:24. > :07:31.airbrushed and were mislaid in. As that damaged the company's
:07:31. > :07:36.credibility? It would not cause a great deal of worry for them. I am
:07:36. > :07:40.sure they will find a creative way to deal with the continuation of
:07:40. > :07:48.that kind of campaign, bearing in mind some of the legislation that
:07:48. > :07:52.applies. Recently, the billionaire areas to be a lorry our fortune
:07:52. > :07:56.made headlines by offering to pay more takes to help President
:07:56. > :08:02.Sarkozy balance the state budget. If the company had lost public
:08:02. > :08:06.esteem it may have regained some through heard gesture.
:08:06. > :08:11.One of China's richest property investors is causing controversy
:08:11. > :08:18.with a plan to buy up 300 square kilometres of Iceland. He wants to
:08:18. > :08:26.turn it into a tourism resort. We have more from Singapore. Who is
:08:27. > :08:32.this man and what does he want to do with the land? He is a former
:08:32. > :08:36.government official. He worked for it China's Central propaganda
:08:36. > :08:41.department and the Ministry of Construction. He is reportedly
:08:41. > :08:45.interested in buying the land for $9 million. Some are concerned
:08:45. > :08:52.about the deal. Because of its close relations to the government,
:08:52. > :08:57.people are wondering whether it is his personal interest or whether he
:08:58. > :09:04.is acting on behalf of Beijing. It is a very important location
:09:04. > :09:10.between North America and Europe. He is buying quite a large part of
:09:10. > :09:14.ice land. It accounts for about 0.3% of the nation. Some people are
:09:14. > :09:19.saying that it is way too large for what he is proposing to do with the
:09:19. > :09:21.man, which is to build it into a tourism resort and golf course.
:09:21. > :09:26.There have been many Chinese investors with a lot of money
:09:27. > :09:31.buying up lots of land around the world. But sometimes it seems to
:09:31. > :09:39.raised some concerns about what their real motivation is. We will
:09:39. > :09:46.watch closely. The National Bank of Greece, the
:09:46. > :09:48.country's biggest lender, reported second quarter results. Eyeless
:09:48. > :09:53.forecast a $40 million loss. Investors will be interested to see
:09:53. > :09:57.what it has to say about the planned merger of rivals Alfa Bank
:09:57. > :10:04.and in Europe and, Hamas having failed to take over how far last
:10:04. > :10:10.year. In the US be much watched SNB home a price index is out for June.
:10:10. > :10:14.Last month it reported prices in the 20 cities surveyed were down
:10:14. > :10:18.4.5% on last year. June's number is expected to be even larger. Later
:10:18. > :10:22.the Fed releases the minutes from its last race setting meeting which
:10:22. > :10:26.should give us a further insight into the discussion that led to the
:10:26. > :10:31.promise to keep interest rates at a record low for at least two years.
:10:31. > :10:35.Let's have a look at the market. These are how the Asian markets are
:10:35. > :10:42.looking. Investors liked those strong consumer spending as we got
:10:42. > :10:52.out of the US. They were happy about the merger with the banks in
:10:52. > :11:02.Greece. They're happy about the appointment off of Yoshihiko Noda.
:11:02. > :11:03.
:11:03. > :11:06.That's all of the business. A report on home ownership in
:11:06. > :11:09.England says an entire generation is being locked out of the housing
:11:09. > :11:15.market. The National Housing Federation says that the proportion
:11:15. > :11:25.of people who own their own home is set to fall to below 64%, the
:11:25. > :11:28.lowest level since the mid-eighties. In some parts of the country this
:11:28. > :11:35.remains a pretty rare sight, a development with planning
:11:35. > :11:38.commission agreed, new homes actually being built. It took years
:11:38. > :11:45.for the site in bed for to get to the stage, where prospective buyers
:11:45. > :11:48.can come to take a look. -- in Bedford. This woman cannot afford
:11:48. > :11:51.one of these properties outright. She and her boyfriend at just
:11:51. > :11:55.starting out as teachers, so she wants to buy a share of the house
:11:55. > :11:59.and pay rent on the rest. The only answer for some trying to get a
:11:59. > :12:04.toehold on the property ladder. The report describes a slow decline in
:12:04. > :12:09.home ownership. Ten years ago 70% of people were living in properties
:12:09. > :12:14.occupied by the owner. That is forecast to fall to wonder 64% by
:12:14. > :12:20.2021. In London it will be much lower. -- to under 64%. More people
:12:20. > :12:24.are renting. The authors of the report think owning a property will
:12:24. > :12:26.only be possible for the wealthy. The National Trust says that
:12:26. > :12:30.existing sites can meet housing needs without damaging the
:12:30. > :12:34.environment. But in recent years the system has failed to deliver
:12:34. > :12:40.anything like enough houses. The question is whether the significant
:12:40. > :12:48.changes underway it will make a difference.
:12:48. > :12:51.Coming up at 6 am, Simon and Kate will be here. They will have been
:12:51. > :12:55.used, business and sport and they will be at a fairy-tale castle
:12:55. > :13:05.where they are hoping spectacular graffiti will be allowed to stay
:13:05. > :13:12.
:13:12. > :13:16.You're watching BBC World News. The headlines: Libya's rebel National
:13:16. > :13:19.Transitional Council says it will seek the extradition of four
:13:19. > :13:23.members of the Gaddafi family who have fled to Algeria. The
:13:23. > :13:29.whereabouts of Gaddafi himself still it is a mystery but Middle
:13:29. > :13:33.East journalist thinks it is unlikely he will just disappear.
:13:33. > :13:40.is a maniac. He would like to be in the spotlight. He would like to