19/10/2011

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:00:05. > :00:15.violent student protests. -- Chile. We now bring you the latest

:00:15. > :00:20.

:00:20. > :00:25.financial news with World Business report. Hello and welcome. The

:00:25. > :00:32.headlines: another day of strikes increase. Banks warned they want to

:00:32. > :00:38.see more sacrifice before writing off her that debt. A new union is

:00:38. > :00:46.forged. Russia and ex-Soviet nations signed an historic trade

:00:46. > :00:54.pact. Another day and another protest against government cuts in

:00:54. > :00:59.Greece. Public-sector workers are staging a general strike today.

:00:59. > :01:04.Athens is caught between opposition to austerity and impatience from

:01:04. > :01:10.overseas creditors. Greece's future as part of the eurozone looks

:01:10. > :01:20.uncertain. How would greet business protest -- coat with a return to

:01:20. > :01:21.

:01:21. > :01:30.the trapped Mark? It has been run by the same family for 70 years. --

:01:30. > :01:39.drachma. The country makes too little itself and often exports are

:01:39. > :01:44.only will materials. Because it gets all its material, honey, from

:01:44. > :01:49.beekeepers you would think this company would be self-contained and

:01:49. > :01:54.would benefit from dropping the euro and adopting a devalued

:01:54. > :01:59.drachma to boost its expert -- exports. But the family who run

:01:59. > :02:09.this company say they do not want to return to the drachma. We always

:02:09. > :02:10.

:02:10. > :02:16.had problems with drachma. The currency went down. For example you

:02:16. > :02:23.would build with a great product but import packaging and pay higher

:02:23. > :02:29.costs. We want to stay with the euro. We want to leave with a

:02:29. > :02:35.stable currency. The company's bosses are enraged by suggestions

:02:35. > :02:43.Greeks are lazy. They say private companies work hard and pay for the

:02:43. > :02:47.country's civil servants. They are fed up with bureaucracy's. To send

:02:47. > :02:53.out product from Athens to an island is more expensive than

:02:53. > :02:58.sending it to Italy. This did not help us to become competitive. We

:02:58. > :03:05.need the free market. If we are in the free market Greek companies can

:03:05. > :03:13.work miracles. The message is clear enough. They have become stronger

:03:13. > :03:17.since Greece adopted the euro. They sell on quality, not price. Greece

:03:17. > :03:22.hopes to get another 8 billion euros from lenders in the next few

:03:22. > :03:27.days but few now believe that will be enough to enable Greece to repay

:03:27. > :03:33.his debts. The head of German Banks says lenders would be reluctant to

:03:33. > :03:38.write off more than the agreed 21 % of Greek debt. The head of the

:03:38. > :03:44.Association of German Banks said he would not consider a bigger haircut

:03:44. > :03:49.without seeing fundamental reform. Always the private investors have

:03:49. > :03:55.said they are willing to accept a 21 % haircut. This is a significant

:03:55. > :04:01.step that will help Greece to come forward and solve their problems.

:04:01. > :04:08.This should be fixed now. This is not yet fixed. This will help

:04:08. > :04:13.Greece to develop in a better way. But it is very important that

:04:13. > :04:19.capital markets, investors, have a minimum of trust in the States and

:04:19. > :04:23.bags. This is not increased when you always increase the amount of

:04:23. > :04:30.haircut which you want to get from private investors. A short distance

:04:30. > :04:34.from here, the Reichstag, angry people a cant. They are very angry

:04:35. > :04:40.at banks. If they heard you say you are not the problem they would get

:04:40. > :04:44.angrier. We have to explain that to the people. We understand they are

:04:44. > :04:49.angry and concerned and do not understand what is going on because

:04:49. > :04:55.this is a very complicated issue. We must make clear that this is not

:04:55. > :05:00.a banking crisis. This is a crisis of trust in the state. We have to

:05:00. > :05:10.make clear to the public that the financing of the welfare state in

:05:10. > :05:17.the past by taking more public debt, this is over. Greece is not alone

:05:17. > :05:24.in its failure to find a credible solution to its huge debt. Moody's

:05:24. > :05:30.followed standard and Poor's and downgraded Spain's credit rating by

:05:30. > :05:34.two notches. They say the banks owed too much to foreign creditors.

:05:34. > :05:41.The downgrade will make it more expensive for Spain to repay its

:05:41. > :05:46.debt. Those problems in the European Union have not deterred

:05:46. > :05:54.their eastern neighbours. Vladimir Putin has outlined a vision to

:05:54. > :06:01.create an Eurasian Union. Earlier this month, a former Soviet nations

:06:01. > :06:08.Russia, Moldova, Ukraine and others signed an historic trade pact. But

:06:08. > :06:16.the free energy which states of Azerbaijan, Turkmenistan and was

:06:16. > :06:21.back a star and have yet to join the customs union. An expert joins

:06:21. > :06:26.us from Armenia one of the signature nations. This is the

:06:26. > :06:36.grand plan of Russian Prime Minister Vladimir Putin? How will

:06:36. > :06:39.

:06:39. > :06:47.it work? It EC's grand plan and as he revealed earlier heearlier he as

:06:47. > :06:54.an economic union first of all. He allayed concerns that this has

:06:54. > :06:58.anything to do with recreating the Soviet Union. He sees this as first

:06:58. > :07:06.of all an economic, NO-SPACE where there will be free movement of

:07:06. > :07:12.goods and capital as well as Labour. But there is also a political

:07:12. > :07:21.agenda. Let's talk about what he wants to achieve. It is a huge idea.

:07:21. > :07:31.It has massive potential. What is behind it from his board a few?

:07:31. > :07:40.turn -- Vladimir Pruden and the Kazakhstan President CVs as an

:07:40. > :07:45.opportunity to recreate a European Union in the space of former Soviet

:07:45. > :07:51.countries. Essentially it will be a replica of the European Union in an

:07:51. > :07:56.ideal case where you will have economic and political union with

:07:56. > :08:00.international projects co- ordinating economic and political

:08:00. > :08:04.policies of the member states. have to leave it here. We have no

:08:04. > :08:12.more time to talk about the issues and problems. I am sure there are

:08:12. > :08:18.many. The profits of Yahoo have felt more than 25% in the three

:08:18. > :08:24.months to September. His chief executive was sacked a few weeks

:08:24. > :08:29.ago. The search engine is st sto compete with Dougal.

:08:29. > :08:36.Shares in Apple fell sharply in trading on Wall Street after it

:08:36. > :08:41.unveiled worse than expected earnings for the third quarter.

:08:41. > :08:48.Profit rose but Apple sold shares 17 million iPhones in the three

:08:48. > :08:52.0 million forecast. Customers are

:08:52. > :09:01.holding off fought the launch of the next phoe next pho is not all

:09:01. > :09:07.bad news. Computer giant Intel recorded a 17 % profit increase.

:09:07. > :09:15.The group saw a sharp rise in sales of servers. Its corporate customers

:09:15. > :09:22.ar ar arentres to phones and notebook PCs using Intel

:09:22. > :09:30.chips stop Bella it was an all-time revenue and profit record. When we