20/09/2011 World Business Report

eurozone countries Greece having it rating downgraded.

Now it is time for the World business news.

Here are the headlines: The euro reels after an unexpected downgrade

for Italy. The Russian government to strike

oil giant Yukos? Japan's Defence Minister says that

confidential information from a major defence contractor was not

For European officials trying to solve the debt crisis in Europe,

there are fresh concerns. Italy's cred rating has been downgraded.

They say the outlook for growth is worsening and they have concerns

about the government's ability to act decisively. Only last week, the

Italian government implemented an austerity plan but there has been

disagreement within the government. Stannard then paused warns marginal

growth make it difficult for the country to achieve new targets. The

government debt was 190 % of quoted domestic product last year. More

than any other country after Greece. To get an analysis, I am joined by

a senior strategist. In terms of Italy, this is a serious wake-up

call for the government. We have had two rounds of cuts from the

government so far, totaling 100 billion. It is not so much the

deficit that is a problem. If the austerity package goes through, it

will make a different. 4.6% of European deficits is dead. The debt

to GDP ratio is the second highest in Europe. -- his debt. That is

what this is about. It is all very well having cuts but you have to

pay this debt of. That is the big worry. That is what S&P is saying.

Interesting this should come from S&P this week. Italy did pass

through those austerity measures last week which was seen as a good

thing. There is talk about China are buying up Italian debt.

Berlusconi did persuade a bank to buy their debt. So good news coming

to them. The austerity measures announced by the Italian government

and agreed do not come into effect until 2012 or 2013. So we have this

gap. The worry is not one only economic but political. Are they

taking this seriously? Thank you. See you later.

Staying with the debt crisis for a bit longer. Greece will resume

talks with officials from the youth and the IMF today. The Greek

finance minister described a Monday's talks as productive answer

estancia. They are under pressure to deliver on promises to improve

tax collection. Head of the World Bank said that so far the measures

taken by Europe to tackle the debt crisis has been an exercise in

buying time. He said it was time to tackle the problem. It is useful,

it stems the crisis and buys time. But the fundamentals have to be

addressed and that is, trying to figure out how to deal with the

sovereign debt problem, the Bank problem and for some problem,

competitiveness. That goes to court questions about the future of the

eurozone. And one direction is, you design a physical union too closely

match the monetary union. They are many ways that can be done. If you

do not do that and face that, you will have to manage the

consequences that countries have taken on too much debt. And all

Europeans can make that decision. My point is, they have to make it.

That was the head of the World Bank. One of Russia's most biggest and

profitable companies saw its head thrown in jail for some years ago.

We now look at whether it was deliberately destroyed by the

government and whether money should be paid out in compensation.

When the government first started chasing them in 2002, they said it

evaded $27 million in tax. Its assets were split up among other

firms. This man was jailed. The European Court of Human Rights will

today rule on a long-standing complaint from the directors of the

company, that the Russian government abuse its tax

enforcement powers. It will depend excessively to drive the company

out of business. They have mounted a strong defence. The Russian

government is maintaining that the managers of the company are known

prisoners. They maintain they are known of tax evaders. This has been

their line since 2003 when the raid by the tax authorities happened.

Brasher is a symmetry to the European Human Rights Convention

and every year, dozens of cases are taken to the courts. -- Russia is a

signatory. $98 billion is a lot of money to pay but there are doubts

among overseas investors. Questions about whether Russia respect the

rule of law. It is trying to sell state assets. Trying to get

investors in. But there is a long shadow cast on them. It is daring

investors away. It is expected the company will appear if it thinks

the reputation has been harmed. There was a recent ruling on a

personal complaint. This sense of the government from mistreating him

at the trial. The court rejected accusations that his arrest was

politically motivated. The company has been keen to talk that up.

One of Japan's most important defence contractors has been

reportedly attacked by the internet. They say some of Mitsubishi's

computer systems have been access. We speak to at Rico Hizon in

Singapore. Quite the sensitive business this company operating?

Absolutely. Mitsubishi is a key defence contractor up to the

country's defence industry. They build fighter jets and weapons,

including surface-to-air missiles. Basically, they won more than $3

billion worth of deals from Japan's Ministry of Defence over the last

year. That is nearly one-quarter of the Ministry's spending that here.

Amid this ongoing cyber attack, the Defence Minister has been very

cautious with his statements, saying he is not aware that

classified information was leaked or compromised. A Mitsubishi

spokesman also denied further comment, saying it is still being

investigated. They will come up with a report by the end of the

month. This hacking impacted the shares of the machinery and man of

factoring, which has also helped the US develop its missile shield.

It is not the only company targeted. Other similar companies have been

hacked this year. Thank you. Squeezing one more story in.

Canada's government will take action to stop the strike of Air

Canada. Almost 7,000 flight attendants are threatening to

strike over wages and pensions. The government says it will register a

legislation to force them to go back to work. Attendance have been

working without a contract since the end of March.

Many of the share markets are treading water. They were down not

so long ago on the story about Italy. Japan took a bit of a knock.

It was closed yesterday for a public holiday. Companies like Sony

are being hit today. They are catching up on yesterday's losses.

Today the news about Italy reminded us all that the eurozone economies

are in a dire Strait. A lot of concern. The euro is down now for

three days in a row. That is a look at the main business stories. I

will see you later for a look at For some more news from the UK.

Photographs have been released of the four miners who died last week.

A BBC programme has been given access to the rescuers and

emergency service people who were involved.

Images of a journey which began with hope and ended with tragedy.

These rescue teams struggled for a day and a half to reach the miners.

The tunnels blocked the debris from a sudden violent flood. To the end,

they hope to find at least one person still alive. We just wanted

to get them back. We would have moved that mountain if we have to

get those people. They trained the mineshaft but could not save the

miners. The news kept getting worse until finally, the last body was

found. After 36 hours on site, we are ready for home. Charles Bresnan

had just marched 40 years of marriage. David Powell was

described as the life and soul of his family. Phillip Hill had been

trying to deal with the recent tragedy. Hundreds joined this

memorial service on Sunday night. One of many around the region. It

is five days since the tragedy. But the pain will be slow to heal. For

some in this quiet Welsh valleys, Coming up: Breakfast as well as the

day's news, business and sport. More on new plans for the energy

industry, emerging from the Lib Dems Conference. All of that and

This is BBC World News. The headlines: The President of the

Palestinian Authority says he will apply for full UN membership of the

Palestinian state later this week. Does but -- despite pressure from

the US not to do so. Activists in Yemen say at least 50

people have been killed in the past two days after a fresh crackdown on

anti-government protesters. The Greek government says drilling

for gas in waters south of Cyprus has started, despite repeated

warnings from Turkey. Our correspondent is in Istanbul and

says the turkey has threatened to retaliate by sending exploration

ship into waters controlled by Turks.

The island is divided. Turkey occupies the more than half and

they argued that there are talks going on to reunify. But until they

are completed, it argues the government has no right to start

exploiting the resources in the sea that should belong to all of the

people of Cyprus. Italy's credit rating has been downgraded by the

agency Standard & Poor's. And Greece remains locked in crisis

talks obit steps. -- talks over its Beginning with the business pages