03/10/2011 World Business Report

year and next. We now have World Business Report. This is World

Business Report. Greece admits it will not hit its deficit targets as

EU finance ministers meet to discuss the crisis. US lawmakers

say Chinese imports threaten American jobs. We go to Singapore.

He cannot hear us. It is an admission that is bound to cause

strife between Greece and its international Vendors. The Greece

government has announced it will make its deficits targets. --

Wilmot -- will not meet. If Greece default or is forced out of the

euro, will it be Ireland, Portugal or Spain next? That is the worry

for Europe as ministers review Athens progress today. The lethal

cocktail of austerity measures and the state's inability to collect

taxes forces it to cut jobs to get a grip on the deficit. The

difficulty for the eurozone partners is that they cannot

extract deeper promises from the government to make greater cuts.

There is the credibility problem. The markets do not believe that the

savings will be fully delivered. Greece may not have delivered on

the financial conditions, wider worries have set in about what may

ha hae eurozone if the -- if it turns off all the taps. We are

part of a system. If Greece default visual haemorrhaged to the whole of

the eurozone. -- is well haemorrhage. We know the

consequences of such an action. We are doing superhuman efforts in the

last 16 months... We need to have a common talk, a common programme, a

common agreement with Europe. This academic believes it is time for

Euro leaders to come out of denial and open up their coffers before it

is too late. They have been following this austerity policy for

1.5 years. That policy is running out of time. Everyone can see that

the main cause of this trouble is the banking system of Europe which

is bankrupt. bankrupt.ocus on tiny bit significant problematic Greece,

it is a mere tactic for not facing up to the fact that the French and

German banks are insolvent. Until we find a solution to that, they

will always be threatened by financial collapse. Finance

ministers meet today and tomorrow, they are not promising any big

announcements until later in the month. There is a lot riding on

that meeting. It is a deadline to save the euro. The build-up is

already underway. Finance ministers are meeting in Luxembourg to

increase the firepower of the bail- out fund. In October, finance

ministers will meet in Paris, a decision will be made on whether

Greece gets the next piece of its 8. At the beginning of November, all

the G20 leaders are meeting where th th is on to come up with

a solution that will reassure the markets once and for all. There is

a lot at stake, as we are all aware, the markets are being taken hostage

at the moment... What we want to see, not only the Greek loan being

extended, but an expansion of the European financial stability. This

is the package that has been put together to bail-out other

countries, for example Portugal and Ireland. That is planned for today.

What was not factored in was that news from Greece, that it will miss

its deficit targets this year and the year after that. We thought

this might happen, didn't we? It is not good news at all. It is worth

bearing in mind that the IMF, European Central Bank have been in

Athens over the past week. They will be aware that Greece is going

to have to miss the original budget target because the recession has

been deeper than expected. They are aware of the situation. They would

not make this announcement so close to such a crucial meeting if they

did not have approval from the troika. The Greece finance minister

is presenting his budget for this year and the are beyond, there are

a lot of new measures that are going to be incredibly difficult to

implement in Greece. Great people feel that a superhuman effort is

being made within Greece to make the changes. Yet is taking a long

time to see a drop in the deficit. Yes, they will have to make the St

CBEs human effort next year. This is the issue of communication in

Greece. -- superhuman. This will not be solved overnight. It will

that is being unveiled today. you for your perspective on this.

We will keep you across all the details on the BBC. US senators

will debate a bill that would make it easier to impose tariffs on

Chinese imports into the US. It is hoped the move will save jobs in

the US at a time of high unemployment. It will punish China

for what they call currency manipulation. The manufacturer

operates here in New Jersey. Sometimes, the owner outsource has

worked to China. He is still somewhat wary of China's impact on

America. We have situations where the economy here relies greatly on

US business opportunities. When those opportunities are taken by

foreign manufacturers, it is less work for the US people. American

politicians are proposing a new bill to the tale China's exports to

America at a time of high unemployment at home. Measures

against Chinese imports into the US trade coming up here. That is

because lawmakers believed China's currency is unfairly undervalued.

That is hurting US manufacturing at a critical time. It is damaging

businesses like this one. Some economists agree the way China

operates is flawed. China have been manipulating their currency and

engaging in wide ranging unfair trade practices for at least a

decade. This has hurt workers in the US and all over the world.

Obama Administration has remained silent, there is mounting pressure

from Republicans who see China as an economic threat. Manufacturers

are unlikely to see things change soon. This bill will be used as a

bargaining chip with China in an often testy relationship. Sentiment

among Japan's largest manufacturers has rebounded. It is still at its

lowest level since the earthquake and tsunami. What is going on with

this? This new data is giving a ray of hope for the Japanese economy

which has contracted over the past three-quarters. Some positive news

finally. A positive reading illustrates that optimists

outweighed pessimists. The big firms are still quite her shares

going forward. -- quite cautious. This quarter and going forward,

there are many challenges remaining, including the very strong yen

against the dollar. The eurozone debt crisis and a slowdown in the

world economy. Analysts say this data will give the Central Bank