:00:06. > :00:16.their lives since March. Those are the latest headlines. We now have
:00:16. > :00:18.
:00:18. > :00:24.World Business Report. This is World Business Report. Progress on
:00:24. > :00:34.Europe's new bail-out fund. It is the end of a turbulent water that
:00:34. > :00:38.
:00:38. > :00:43.has seen $9 billion wiped out. -- quarter. The European Central
:00:43. > :00:52.Bank's other headache, rising inflation in the eurozone as it
:00:52. > :00:57.faces growing calls to cut interest rates.
:00:57. > :01:02.The political battle to shore up the eurozone continues after that
:01:02. > :01:07.key vote in Germany yesterday, Estonia has become the latest
:01:07. > :01:14.member to sign off on the bail-out fund. The Baltic nation's
:01:14. > :01:19.parliament voted in favour on debate. Today is the turn of
:01:19. > :01:22.Austria, it is expected to pass the measures, it leaves only the
:01:22. > :01:28.Netherlands and Slovakia or of the 17 eurozone members to approve the
:01:28. > :01:34.plan. There is a growing sense amongst investors that policy
:01:34. > :01:39.makers are behind the curve. The expanded fund of 440 billion euros
:01:39. > :01:45.sounded like a lot of money when it was Greece and Ireland in trouble.
:01:45. > :01:51.Spain has public debt of 730 billion euros. Italy has debt of
:01:51. > :01:57.1.8 trillion euros, four times larger than the fund itself. Let's
:01:57. > :02:00.have a look at how the markets are reacting to this in Asia. We go to
:02:00. > :02:09.Singapore. A great deal of turbulence on the markets and
:02:09. > :02:19.investors have lost a lot of money. It is right. Despite the vote, Asia
:02:19. > :02:25.
:02:25. > :02:33.stocks did not make any big games here. -- gains. In fact, most Asia
:02:33. > :02:37.markets are trading in negative territory at the moment. There are
:02:37. > :02:43.concerns over Europe, the global economy over the last few months
:02:43. > :02:48.has led to so much volatility on the markets. They have wiped out
:02:48. > :02:58.nine trillion dollars value. It is driving investors to stay clear of
:02:58. > :03:02.
:03:02. > :03:06.the yen, De La -- dollar. Many in the region have taken a very
:03:07. > :03:13.cautious view. The Nikkei is going to put in its worst quarter in more
:03:13. > :03:17.than one year. It has lost more than 11%. That is the worst since
:03:17. > :03:27.June at 2010. Australian showers are forecast to be making big
:03:27. > :03:28.
:03:28. > :03:33.losses. It has lost 15% this year. That is its second sharpest yearly
:03:33. > :03:37.fall in two decades. All of these volatility will continue until the
:03:37. > :03:40.Europeans take their bail-out plans one step further. Whether the
:03:40. > :03:50.Germans will agree to a more permanent solution in addressing
:03:50. > :03:59.
:03:59. > :04:09.the problem. Thanks mac. -- Thank you. There are reports to boost the
:04:09. > :04:10.
:04:10. > :04:14.bail-out fund to two trillion euros. We now have the German vote, there
:04:14. > :04:21.are other nations yet to vote, how encouraged can we be by the fact
:04:21. > :04:29.that Germany has said yes? My eyes of Angela Merkel's coalition said
:04:29. > :04:34.yes, but not everyone did. -- most. We are talking about a plan that
:04:34. > :04:39.was hatched two months ago and was hatched for a different problem. We
:04:39. > :04:44.have moved on considerably. There is a dislocation and what the
:04:44. > :04:52.markets are looking for and what the policy makers are debating. --
:04:52. > :05:00.between what. Maybe something will be hatched at the G20 summit in
:05:00. > :05:08.five weeks. I think Greece, we know cannot pay its debts as they stand.
:05:08. > :05:14.We have to have some degree of a haircut. As a by-product of that we
:05:14. > :05:23.have to have a recapitalisation of some of the banks. Markets do not
:05:23. > :05:31.really believe... We need to have the capitalisation of the banks to
:05:31. > :05:37.with down the right down on Greece. This is not restricted to Greece,
:05:37. > :05:46.we have concerns about Italy as well. You have mentioned the size
:05:46. > :05:50.of the Italian bond market. It is 120 %. It has been of that
:05:50. > :05:58.magnitude for the last 10-15 years. In that context it has not changed
:05:58. > :06:04.that much. But this is an economy that has not shown much growth
:06:04. > :06:11.either. Structural reforms are needed. They take a great deal of
:06:11. > :06:16.time to work through the system. Is it for her to say because the
:06:16. > :06:26.eurozone leaders are behind the curve, the problem is costing
:06:26. > :06:27.
:06:27. > :06:31.investors as well? -- is it fair to say. It is very difficult for
:06:31. > :06:38.politician has to step up to the plate and say we have a structural
:06:39. > :06:43.problem, we need to fix it now. is a bit like the German
:06:44. > :06:47.politicians yesterday, it is only when they get to the endgame and
:06:47. > :06:57.feel the risks of a structural default that they take the tough
:06:57. > :06:57.
:06:57. > :07:02.decision. Another headache for the European Central Bank, inflation in
:07:02. > :07:08.Germany hit 2.6% in September. That is the highest in three years. It
:07:08. > :07:15.is expected to be a similar story across the eurozone. Rising prices
:07:15. > :07:19.present a growing dilemma for the European Central Bank. This is a
:07:19. > :07:23.difficult time for policy makers in Frankfurt. Under normal
:07:23. > :07:28.circumstances the European Central Bank has one overriding goal, to
:07:28. > :07:33.keep inflation under control. Consumer prices have been rising
:07:33. > :07:39.faster than the Central Bank would like. It is a particular problem in
:07:39. > :07:44.Germany. Circumstances in the eurozone are far from normal.
:07:44. > :07:50.Greece is expected to default on its debt despite harsh cuts and
:07:50. > :07:56.public spending. -- cuts in public spending. Larger European economies
:07:56. > :08:04.like Spain and Italy are struggling with high debts and low growth. The
:08:04. > :08:07.ECB is under pressure to boost growth. The eurozone is slowing
:08:07. > :08:17.market Glee and there is concern about funding availability for
:08:17. > :08:18.
:08:18. > :08:23.banks. -- markedly. They are less worried about inflation in the
:08:23. > :08:33.medium term, they think that Lord growth now and a weakened outlook
:08:33. > :08:36.will lead to inflation falling down later. -- lower growth. It has made
:08:36. > :08:40.cash available to banks to stabilise it turbulent financial
:08:40. > :08:50.markets. That makes it harder for the
:08:50. > :08:50.
:08:51. > :08:58.financial power-brokers of Frankfurt to cut interest rates.
:08:58. > :09:06.Time for one more item of news. Hewlett-Packard has announced that
:09:06. > :09:13.its ousted boss will get a pay-out of $10 million. He saw $14 billion
:09:13. > :09:18.wiped off its market value. He is being replaced by the former eBay
:09:18. > :09:24.boss, Meg Whitman. She would get a salary of $1 a year with the
:09:24. > :09:31.ability to earn millions in share options and performance bonuses.
:09:31. > :09:36.Let's take a look at the market. The Nikkei has a bit of a mixed
:09:36. > :09:46.response. There are some votes outstanding for the European
:09:46. > :09:49.
:09:49. > :09:59.stability fund. There is a cap on optimism. That's it from me and
:09:59. > :10:04.
:10:04. > :10:09.World Business Report. More news from the UK. The European
:10:09. > :10:13.Commission is threatening legal action against Britain in a dispute
:10:13. > :10:20.about a residency test about which EU nationals are eligible for
:10:20. > :10:26.benefits. They discriminate unfairly against foreigners. 140
:10:26. > :10:31.members of the armed forces have been honoured for bravery. 16
:10:32. > :10:41.Military crosses banned by those serving in Afghanistan last winter.
:10:42. > :10:43.
:10:43. > :10:53.-- earned. His action is where a display of decisive courage. When a
:10:53. > :10:55.
:10:55. > :11:05.grenade landed three fee it away, - - three feet away. It was just a
:11:05. > :11:12.
:11:12. > :11:16.reaction. He would have done the same for me. The majority of those
:11:16. > :11:21.honoured faced a hard three months of fighting. Building relations
:11:21. > :11:25.with the Afghan population was a crucial part of the operation. She
:11:25. > :11:33.did more than Glenn gardener, he raced his life to bring a badly
:11:33. > :11:41.injured Afghan soldier to safely. If he did not show the
:11:41. > :11:49.willingness... 140 military personnel have received awards.
:11:49. > :11:59.Each story a reminder of the dangers they face every working day.
:11:59. > :12:00.
:12:00. > :12:03.Coming up at 6am, we have Breakfast. They have a special report on a
:12:03. > :12:13.warning about conspiracy theories and propaganda are entering the
:12:13. > :12:13.
:12:13. > :12:16.classrooms. This is BBC News. The headlines:
:12:16. > :12:22.George Papandreou is set to continue his bid to convince Europe
:12:22. > :12:26.that his country can meet the terms of the austerity programme. He will
:12:26. > :12:30.meet the President of the European Council and then will go on to
:12:30. > :12:33.Paris to top with President Nicolas Sarkozy. Michael Jackson's former
:12:33. > :12:39.bodyguard has told a court in California that Conrad Murray asked
:12:39. > :12:42.him to gather up medicine before calling the emergency services.
:12:42. > :12:47.More than 1,000 Royal Navy personnel will be told they have
:12:47. > :12:52.been made redundant today as part of the UK's Strategic and Defence
:12:52. > :12:56.Review. 50 people are reported to have been killed in anti-government
:12:56. > :13:01.protests in Syria in the last two days. Hillary Clinton has condemned
:13:01. > :13:07.an attack on the ambassador to Syria after he was pelted with
:13:07. > :13:17.stones and tomatoes. This inexcusable assaults his par of an
:13:17. > :13:18.
:13:18. > :13:23.ongoing campaign of intimidation. - inexcusable assault is part. We
:13:23. > :13:28.are raising questions about what is going on inside Syria. It reflects
:13:28. > :13:36.an entire loans on part of the regime and its supporters. -- and
:13:36. > :13:40.intolerance. It is deeply Let's have a look at a headlines
:13:40. > :13:43.from around the world. The story that most of the International