:00:03. > :00:13.says he is ready to support Egypt's transition to democracy.
:00:13. > :00:17.
:00:17. > :00:22.Those are the latest headlines. Now for the latest financial news.
:00:22. > :00:26.Hello and welcome to World Business Report. These are the headlines:
:00:26. > :00:29.Looking east for help. Italy turns to China, as the eurozone debt
:00:29. > :00:34.crisis put French banks under pressure.
:00:34. > :00:43.Cutting 1.2 trillion dollars from the US debt, the first item on the
:00:43. > :00:48.agenda for America's super committee.
:00:48. > :00:51.Hello. Italy is turning to China's largest sovereign wealth fund.
:00:51. > :00:55.Meetings have taken place between the China Investment Corporation
:00:55. > :01:02.and Italian officials, according to the Financial Times. As well as
:01:02. > :01:06.buying bonds, they have also covered talks on strategic
:01:06. > :01:14.investments in Italian companies. There are fears that the eurozone
:01:14. > :01:19.crisis is spreading to Italy. Michael, China is reported to be in
:01:19. > :01:23.discussions with Italy, but because it also purchasing Spanish and
:01:23. > :01:26.European assets. Why is it doing that?
:01:26. > :01:31.Are the first thing to mention his there has been no confirmation from
:01:31. > :01:37.China yet about those reports in newspapers about Italy approaching
:01:37. > :01:41.China perhaps to buy Italian bonds. Why would it do this? Quite simply,
:01:41. > :01:45.China has a lot of money, more than three trillion dollars worth of
:01:45. > :01:49.foreign reserves, which it has built up over the last few years
:01:49. > :01:54.because of its trade surpluses. It has money to spend, and it is
:01:54. > :01:58.looking to invest it. Most of that money is invested in the US
:01:58. > :02:03.denominated vehicles, like US Treasury bonds. But it does have
:02:03. > :02:06.money invested in Europe, in Europe bombs. Of course, Italy, which
:02:07. > :02:13.needs to raise money would perhaps go to China, which has money to
:02:13. > :02:21.spend, and suggest they spend money in Italy. This news is not perhaps
:02:21. > :02:25.altogether surprising. China has bought assets in Greece,
:02:26. > :02:28.it is reportedly looking to buy more assets in Italy. Is the
:02:28. > :02:34.Italian government right to be worried about the colonisation of
:02:34. > :02:38.Europe by China? I think it is perhaps a more
:02:38. > :02:42.immediate worry, the need to raise money. In the past, this issue has
:02:42. > :02:46.been raised, particularly in America, because so much of China's
:02:46. > :02:51.foreign reserves have been invested in America. People there have
:02:51. > :02:56.raised the idea that China is essentially America's banker, and
:02:56. > :03:01.what does that mean for negotiating trade deals? It could affect their
:03:01. > :03:05.relationship in all kinds of ways. That could also happen in this
:03:05. > :03:09.particular instance, but at the moment, Italy seems to be in need
:03:09. > :03:13.and China has money. You also have to remember that it is perhaps in
:03:13. > :03:16.China's interests to keep the eurozone stable. China does
:03:16. > :03:22.hundreds of billions of dollars worth of trade with Europe every
:03:22. > :03:26.year. If there is a crisis in the eurozone, a fall down in demand in
:03:26. > :03:30.the economy, then people would buy as many Chinese goods and that will
:03:30. > :03:35.affect the Chinese economy. So it is not simply a truism on the part
:03:35. > :03:39.of the Chinese government if this news turns out to be true.
:03:39. > :03:44.Thank you. Those reports about it of returning
:03:44. > :03:49.to China helped supermarkets on Monday after dramatic falls in
:03:49. > :03:56.Europe after France's three biggest banks bore the brunt of the latest
:03:56. > :04:00.debt crisis sell-off. There are reports all three may suffer a
:04:00. > :04:04.credit score at downgrade by Moody's later this week. Analysts
:04:04. > :04:08.say the real cause of default is speculation that Germany may decide
:04:08. > :04:13.it is better to let Greece default rather than attempt a second bail
:04:13. > :04:17.out. The German economics minister spooked the markets earlier this
:04:17. > :04:23.week by talking about an orderly bankruptcy of Greece. That is
:04:23. > :04:27.something that Germany's finance minister said he could not rule out.
:04:27. > :04:30.TRANSLATION: I think, basically, you cannot exclude anything. I have
:04:30. > :04:34.already said this would be a bad government if it did not prepare
:04:34. > :04:38.for things which you can't imagine. The financial markets are showing
:04:38. > :04:46.an exaggerated nervous reaction. The real economic situation is not
:04:46. > :04:50.as bad. I am joined now by the editor of
:04:50. > :04:54.Investment weekly. Let's talk about those French banks. The investors
:04:54. > :04:59.seem to have lost confidence because of their exposure to debt.
:04:59. > :05:01.Are we likely to see one of them go bust? I suspect we probably will.
:05:01. > :05:11.They have been rumours all through the summer that the three main
:05:11. > :05:13.banks have talked about struggling a considerably. We are coming up to
:05:13. > :05:17.the third anniversary of the collapse of Lehman Brothers, and
:05:17. > :05:21.people are saying that we should let other big institutions fail,
:05:21. > :05:30.too. So I would not be surprised if one of the French banks does go. It
:05:30. > :05:34.will be very painful if it does. It might be taken over by one of the
:05:35. > :05:37.bigger banks. We could talk about a lot more. We will talk to lay debt
:05:37. > :05:41.in the newspaper review. Thank you.
:05:41. > :05:48.The clock is ticking for a new group of lawmakers in Washington,
:05:48. > :05:52.DC who have a tough task. A committee has been created made up
:05:52. > :05:56.of Republicans and Democrats, who will meet this Tuesday, to try to
:05:56. > :06:00.have read a deal that will cut the federal deficit. They have just ten
:06:00. > :06:06.weeks to do it. It is called the Super committee,
:06:06. > :06:09.and its 12 members face a daunting task - they need to cut the US
:06:09. > :06:14.deficit by more than one trillion dollars over the next ten years.
:06:14. > :06:18.With the jobless rate stuck above 9%, Americans are impatient. They
:06:18. > :06:23.want to make sure that budget cuts don't get in the way of job
:06:24. > :06:27.creation. The 12 members of the so- called super committee, six
:06:27. > :06:32.Democrats and six Republicans, are charged with making sweeping cuts
:06:32. > :06:36.to the US federal budget by late November. That is a tall order.
:06:36. > :06:39.Many are worried that these cuts will imperil the already fragile US
:06:39. > :06:48.economic recovery. Others say that the proposed cuts will not be
:06:48. > :06:51.enough to get the economy back on track. This man is one of the most
:06:51. > :06:57.high-profile economic advisers in the US. He is sceptical about US
:06:57. > :07:04.efforts to resolve its debt crisis. A right way to create jobs and rain
:07:04. > :07:11.in the deficit would be higher taxation, especially on companies
:07:11. > :07:15.who are walking away tax-free through international tax agents,
:07:15. > :07:18.as well as higher taxation on the rich. It would give revenues to the
:07:19. > :07:22.government so it could invest in crucial areas. Some experts believe
:07:22. > :07:29.the committee members will succeed because their mandate is within
:07:29. > :07:34.their reach. Are they? The lawmakers should be doing more.
:07:34. > :07:39.trillion dollars is a lot of money. But over ten years, it does not
:07:39. > :07:47.come close to solving our fiscal problem, or two to -- stabilising
:07:47. > :07:57.our debt. Trying to cut the deficit while creating jobs is proving to
:07:57. > :08:00.be one of President Obama's biggest challenges.
:08:00. > :08:04.World leading carmakers will show off their latest models at the
:08:04. > :08:11.Frankfurt Motor Show this week. It comes after a year of strong car
:08:11. > :08:15.sales would have helped revive the motor industry. But the growth of
:08:15. > :08:20.car sales in China seems to be slowing. Economic weakness and
:08:20. > :08:26.record debt levels in Europe and the US are also causing concerns.
:08:26. > :08:29.The chief executive of forward Europe joins us now. Your company
:08:29. > :08:33.did get through the crisis without going bankrupt, and you are now
:08:33. > :08:42.looking to China and Russia, particularly a joint venture in
:08:43. > :08:46.Russia. How difficult is it to work with the Russians? We have signed
:08:46. > :08:48.the manner Matt -- memorandum of understanding with the largest car
:08:48. > :08:53.manufacturer in brush it with a view to completing that and
:08:53. > :08:57.starting the joint venture in the next few weeks. We found the
:08:57. > :09:01.discussions both with the Russian government and with the company to
:09:01. > :09:05.be very fruitful, and joint ventures always have some issues to
:09:05. > :09:10.resolve, but I think it was very professionally approached and I am
:09:10. > :09:16.very comfortable with the Russian company. Let's briefly look at the
:09:16. > :09:19.new car that is coming out. Apparently it will act as your
:09:19. > :09:24.personal assistant as well as driving you anywhere where you want
:09:24. > :09:30.to go? It is not a car that we will launch. We have been quite precise
:09:30. > :09:35.on that. But a number of key design features will be used in the future.
:09:35. > :09:38.There is a lot of technology in the car, some of it to the report in
:09:38. > :09:43.the near term, some of that deliver ball in the longer term. It engages
:09:43. > :09:53.and interacts with the driver. look forward to tested it. Thank
:09:53. > :10:06.
:10:06. > :10:12.you. The now for some it more news from
:10:12. > :10:16.the UK: David Walliams has raised nearly �1.2 billion for Sport
:10:16. > :10:20.Relief after completing his 140 mile swim along the River Thames.
:10:21. > :10:25.He battled a stomach upset, rescued a dog, and avoided being attacked
:10:25. > :10:31.by Swans. Thousands turned out to cheer him on for the final stretch,
:10:31. > :10:34.which he said was one of the most gruelling.
:10:34. > :10:40.He is famous as a comedian and accomplished actor, charity
:10:40. > :10:44.fundraiser, and something of a socialite. But David Walliams's 140
:10:44. > :10:50.mile, eight days from along the Thames, has propelled him into the
:10:50. > :10:54.world of the superhero. The extraordinary feat started here the
:10:54. > :10:59.river's source and ended in Westminster. Along the way,
:10:59. > :11:05.cheering crowds helped him as he battled freezing, muddy workers,
:11:05. > :11:09.strong tides and dangerous undercurrents. He even rescued a
:11:09. > :11:16.drowning dog along the way. It is very hard to move your body through
:11:16. > :11:20.the water when you feel like you are going to throw up. He has
:11:20. > :11:25.previously swum the Channel and the Straits of Gibraltar for charity.
:11:25. > :11:31.For this challenge, he also had to battle all of the sewage that was
:11:31. > :11:35.washed into the Thames after the weekend's heavy rains. I don't know
:11:35. > :11:39.if I will get into the water again. The bathers the only water I want
:11:39. > :11:42.to see for quite a while! The money raised will kick-start the 2012
:11:42. > :11:48.Sport Relief campaign, and also undoubtedly raise its profile, as
:11:48. > :11:53.it continues its tradition of raising millions to help improve
:11:53. > :11:59.people's lives in the UK and the most deprived parts of the world.
:11:59. > :12:02.Well done David Walliams. Coming up at 6am, Breakfast. The
:12:02. > :12:12.team will be at the opening of the biggest urban shopping mall
:12:12. > :12:17.anywhere in Europe, as West Field Stratford City opens for business.
:12:17. > :12:19.You are watching BBC World News. The headlines: The head of Libya's
:12:20. > :12:25.transitional government has told thousands of supporters that the
:12:25. > :12:31.country will avoid extremist ideology and promote moderate Islam.
:12:31. > :12:34.He was delivering his first public speech since arriving in Tripoli.
:12:34. > :12:38.Chris's power workers' union says it will sabotage government plans
:12:38. > :12:43.to impose a new emergency property tax designed to save the country
:12:43. > :12:48.from bankruptcy. Kenya's Prime Minister has appealed
:12:48. > :12:52.for calm after a fuel pipeline exploded, killing at least 120
:12:52. > :12:56.people. The Turkish Prime Minister says he
:12:56. > :13:04.is ready to support Egypt's transition to democracy. He is in
:13:04. > :13:07.Cairo, on the first stock of his tour of North Africa. He has said
:13:07. > :13:12.he wants to place himself as a man who can help reshape the Middle
:13:13. > :13:16.East, and this is very new. In the past, Turkey and Egypt were not
:13:16. > :13:20.particularly close, and in the recent past, Turkey had no
:13:20. > :13:25.influence at all in the Middle East. But the welcome the Turkish Prime
:13:25. > :13:35.Minister got yesterday tells you how much his profile has risen.
:13:35. > :13:40.