14/09/2011 World Business Report

Luther King as a terrible man and is getting about her husband's

price -- vice-president, Lyndon Johnson. -- scathing. We now have

the latest financial news. This is World Business Report. The

headlines: Germany's chancellor calls for calm ahead of crucial

talks with the leaders of France and Greece today. Italy's

parliament seeks to end weeks of dithering and indecision bypassing

austerity measures. I am sure you are aware it has been a very

volatile week for the eurozone. Turbulent by its standards and it

is only when state. On Monday shares in French banks all fell by

over 10%. -- only Wednesday. The shares have bounced back on Tuesday

and Wednesday. Germany's finance minister added to jitters saying

Greece leaving the eurozone could not be ruled out. Angela Merkel

says Europe faces and his direct challenge and everything must be

done to keep the eurozone together. Later today she would discuss the

crisis with the French President and the great Prime Minister. I am

head -- joined by head of capital investments. I do not know what

they can say. The Greece economy was expected to grow weekly this

year because of the austerity measures. It has disappointed the

mediocre expectations we had. The Prime Minister will announce new

measures on the telephone, one is to lay off 40,000 public sector

workers next year? I do not know what the limits are. We know that

the tolerance of the great body politic has been one very thin. The

Prime Minister has taken some very decisive steps, but to stabilise a

debt crisis like this, you have to grow the economy to some degree.

You cannot lose 7% a year. Greece has been in a depression since 2008.

More cuts will cause it to grow more slowly. The euro keeps sinking

in the meantime. We will see you when we go through the newspapers.

Let's stay with the eurozone. Italy's austerity bill is expected

to get approval in the lower house of parliament today. It will not be

agreed a moment too soon for the financial markets. The cost of

borrowing has shut up to a three- year high. The package has been put

together after weeks of dithering and squabbling. It has been

described as the package to save Italy. No doubt it will be properly

implemented. One reason why Silvio Berlusconi has been in Strasbourg

to try and reassure the EU President that the 54 billion euros

deficit cut will be rigorously enforced. Getting this far has been

tricky. Many in the financial world feared Italy had lost the will to

push the unpopular plans through. Representatives squabbled over the

main measures. Higher taxes for high income earners and changes in

pensions. Some provisions were dropped and then reinstated.

TRANSLATION: I think the austerity measures were put together very

quickly, but they are essential. There should be benefits rather

than problems. Agreeing the package is one thing, making its stake is

another. There is no sign the opposition has gone away.

TRANSLATION: No austerity measure will help. We are burning billions

because of Berlusconi's unreliability. The turmoil in Italy

centres not only on the solvency but the fortunes of a Prime

Minister who seemed reluctant to push some of the tougher measures

through. Italy is financing itself with some of the highest interest

rates it has paid since joining the eurozone, the cost of borrowing may

only come down when Italy can show its austerity plan is eating into

its 1.9 trillion euros debt pile. Premier Wen Jiabao Open de World

Economic Forum a few hours ago. -- opened the World Economic Forum.

Premier Wen Jiabao used his speech to champion China's economic

progress over the last decade. He said China needed to focus more on

stimulating its domestic economy to drive growth. TRANSLATION: China

will continue to expand its domestic demand to increase more

domestic consumption, to increase living standards. That is a taste

of what he had to say. We go to the World Economic Forum. What was his

key message? Premier Wen Jiabao is due to retire over the next year.

He will have had ten years at the helm of the Chinese juggernaut

economy. He is taking this opportunity to pass himself and his

team on the back. He also talked about the new decade of people

growth. He also took the opportunity to talk about some of

the challenge is that remain ahead. The average Chinese family makes

and the 4,000 US dollars every year. That is much less than a comparable

family in America. There is a lot of catching up to do. He talked

about ways to do that. Urbanisation, talking about people leaving from

villages to the city's. Cities seem to be mushrooming out of nowhere.

This is happening. I am sure he had something to say about the European

debt crisis? That is right. Even before the conference started,

delegates were talking about the news that Italy and China were

together. Premier Wen Jiabao said China were happy to help, but he

wanted the rest of the world to recognise China's economic status.

Thank you. Let's have a look at some other business stories.

Microsoft has unveiled the next generation of the Windows operating

system. Windows aid will run on tablet computers as well as desktop

and laptop PCs. -- Windows 8. The Scandinavian airline will present

his new strategy later, it has been struggling to compete with low-cost

rivals such as Ryanair and Norwegian air. It will focus on

cost cutting and target a return to profit this year. It has only made

a profit in the last eight years twice. India's releases its

inflation figures later today. Analysts are predicting a rise of

9%. India's Central Bank have had to increase borrowing costs 11

times in the last 15 months. Intel has set up a development

partnership with internet giant Google to improve its mobile phone

and Tatler processes that run on the Android system. -- tablet

processors. Let me tell you about what is happening on the markets. I

cannot tell you figures at the moment because of technical

problems. In Asia Japan is down by about 2%. Other markets in Asia are

lower. It is because of the same story we have been talking about

for many days and weeks. The concern about Europe. It is sliding

on the foreign exchange market for the fifth day in a row. Oil is also

down. It is because of concerns about the European debt crisis. We

were told more about that when we look at the International

newspapers in a few moments time. We have some more news from the UK.

The first female Asia peer has criticised Bangladeshi families

living in Britain for having too many children. She said minority

communities have a large number of children to claim more benefits.

Amy Winehouse's family are launching a charitable foundation

in her name. Her father says he wants the money to go to causes

that were close to her heart. It would have been Amy Winehouse's

28th birthday. Her family has released this song, recorder with

Tony Bennett just months before her death. -- recorded. The proceeds

will help youth charities. I was in New York the day she died. I was

with my cousin. As I was told she died, I had this thought, I was

like, I -- icy calm. Amy Winehouse Foundation, children and horses. My

beliefs are well known, I believe in life after death. Amy Winehouse

was happy and off drugs in these months he says. The song, a

reminder of the talents rather than the troubles.

This is BBC News. The headlines: Leaders from Greece, Germany and

France will hold emergency talks on the debt crisis. A telling

conference involving the Greek Prime Minister, Angela Merkel and

Nicolas Sarkozy comes amid growing fears that Greece is on the verge

of defaulting on its debt. -- telephone conference. The talks may

not be enough to come the markets. The words will be strong but you

get no indication from the German government that there are soup the

new measures that will suddenly pull a rabbit out of the hat. --

Super. If the government does not deliver something larger than the

rhetoric that Angela Merkel and Nicolas Sarkozy have provided, then

there will be difficulties. You get no indication that they were

satisfied these markets that have increasingly high expectations.

Gunfights continue in Kabul, 12 people are killed including six

Taliban fighters. Premier Wen Jiabao has opened the World

Economic Forum in Dali. He said he was confident of growth and that

China will continue to invest in Europe. -- audio tapes of Jackie