:00:06. > :00:16.greeted by a large crowd. Now it is time for the latest financial news,
:00:16. > :00:22.
:00:22. > :00:26.World Business Report. Warm welcome. The headlines: Emergency talks in
:00:26. > :00:32.Frankfurt and still, no agreement on plans to save the euro. Share
:00:32. > :00:37.prices fall around the world as the optimism about the deal to be
:00:37. > :00:47.reached this weekend evaporates. Australia's Prime Minister is
:00:47. > :00:50.
:00:50. > :00:55.urging an end to a dispute between Qantas and its unions. The optimism
:00:55. > :00:59.about a solution to Euro -- Europe's debt crisis appears to be
:00:59. > :01:04.evaporating as details emerge of a rift between France and Germany are
:01:04. > :01:10.they had to boost the bail-out fund. The birth of Nicolas Sarkozy's. I
:01:10. > :01:13.was forced to take second place as the French President found himself
:01:13. > :01:19.dragged away for crisis talks to reach a compromise before a vital
:01:19. > :01:23.summit on Sunday. It was a nervous sort of a day for Nicolas Sarkozy.
:01:23. > :01:27.With crisis talks over the eurozone's debt looming, the French
:01:27. > :01:33.President did manage to make a fire -- flying visit to his heavily
:01:34. > :01:40.pregnant wife in hospital. She later gave birth to their baby girl.
:01:40. > :01:44.But the proud new father or not, the problems in the eurozone wait
:01:44. > :01:51.for no-one. With the clashes over the Greek or austerity measures top
:01:51. > :01:54.in their minds, Europe's top leaders gathered to try and find a
:01:54. > :01:58.solution to the crippling debt problems. There are major sticking
:01:58. > :02:03.points, especially between his desire cosy and German Chancellor
:02:03. > :02:10.Angela Merkel. Not least is a disagreement over the eurozone
:02:10. > :02:13.bail-out fund, to be raised to 440 billion euros, and the role of the
:02:13. > :02:19.ECB. Greece continues to cause a serious rift. Specifically about
:02:19. > :02:25.how to write off as much as 50% of Greek bonds. The stakes are high.
:02:25. > :02:28.The IMF and global policy makers, not to mention the markets, are
:02:28. > :02:32.demanding that a comprehensive rescue strategy promised by France
:02:32. > :02:38.and Germany is finalised by Sunday. Judging from their body language as
:02:38. > :02:45.they left, the stalemate continues. Now Nicolas Sarkozy has two things
:02:45. > :02:53.to keep him up at night. For more analysis, I am joined by the global
:02:53. > :02:57.head of research at H Seaby. There is so much at stake, and which is
:02:57. > :03:01.why it is difficult to come to a solution. Talk us through the key
:03:01. > :03:06.issue regarding the bail-out fund and the role of the ECB that is
:03:06. > :03:10.causing so much tension. What they are trying to do is work out a way
:03:10. > :03:16.of leveraging the bail-out fund, making it as effective and pre-
:03:16. > :03:20.emptive as possible. There were temporary bond purchases in early
:03:20. > :03:25.August which were agreed by the ECB but that was all temporary. What
:03:25. > :03:30.they want is a permanent solution. One of the problems is that you
:03:30. > :03:34.have 17 governments, all trying to agree a way forward. But the
:03:34. > :03:40.markets are always ahead of them. So you must come up with something
:03:40. > :03:45.this weekend that says, we are going to move quickly, with the
:03:45. > :03:49.rescue fund, with the ECB. They have their own things to agree, the
:03:49. > :03:54.private sector involvement, the insuring of bonds, so there is an
:03:54. > :03:59.awful lot of things, not just this. He is they are going to move
:03:59. > :04:04.quickly, they have to come up with something which means that all of
:04:04. > :04:08.the parliaments have to Ryo -- vote in favour. It is the European than
:04:08. > :04:12.will stability fund, presumably that must be voted yes within all
:04:12. > :04:16.of the parliaments. Whether it does or not, what we saw last time when
:04:16. > :04:19.we had the meeting in July was that they agreed and then it gradually
:04:19. > :04:23.went through the parliament and there was some nervousness that
:04:23. > :04:27.somebody would not do that. But if we get some agreement, I think
:04:27. > :04:34.everybody knows that the stakes are very high for this meeting. I see
:04:34. > :04:41.this as just, the sort of backwards and forwards between the government
:04:41. > :04:46.ahead of that meeting. What I think is going to go on is that they will
:04:46. > :04:49.come to some agreement. It may just not be as much as the market hoped
:04:49. > :04:59.because they do not read that they will get something that really
:04:59. > :05:12.
:05:12. > :05:15.worked. This story is in the papers so we will talk more men. In Greece,
:05:15. > :05:18.the latest general strike continues. The street protests have not
:05:18. > :05:24.deflected politicians from voting on their the public sector parts,
:05:24. > :05:28.all of the latest promised Budget measures are up for final approval
:05:28. > :05:35.today. But there are now deeper concerns about the health of the
:05:35. > :05:40.financial system itself. On the march for a second day. Protesters
:05:40. > :05:44.say the austerity measures are squeezing people dry, Mosley the
:05:44. > :05:48.government would agree that Greece's party would agree that it
:05:48. > :05:54.has no choice but to push through the final vote today on tax riots,
:05:54. > :05:58.wage hikes and lay-offs. Otherwise Athens will not get its next
:05:58. > :06:03.injection from the emergency cash of the UN the IMF. But the UN today,
:06:03. > :06:09.there are wider worries. They are angry. The public concern and that
:06:09. > :06:14.is about the government's debt. In many ways, there is as much worry
:06:14. > :06:18.about the financial health of the banks and what strain they can take.
:06:18. > :06:22.This European Bank is about to mate with this one over here. Banks like
:06:22. > :06:28.this are trying to head off a larger enforced haircut on their
:06:28. > :06:33.loans. This senior figures says that their 10 billion euros is in
:06:33. > :06:38.readiness to stave off a run on the banks. 13 billion. I think that the
:06:38. > :06:41.financial system will survive. But there is a lingering question about
:06:41. > :06:51.the involvement of the state and this is something that definitely
:06:51. > :06:51.
:06:51. > :06:55.we want to avoid. And the proposed measures of the Uribe Inc, --
:06:55. > :07:02.European Bank, with that money, that creates conditions for being
:07:02. > :07:06.able to withstand even this kind of revenge well it in terms of the
:07:06. > :07:11.Greek government bonds that we have. Whatever the size of the next
:07:11. > :07:15.haircut, Greece remains at the Air Messi of the markets. His European
:07:15. > :07:17.paymasters and also its popular protests. A failure to get the
:07:17. > :07:25.austerity budgets through would please the crowds but it could
:07:25. > :07:28.leave the country unable to pay its bills. Let's move on to other
:07:28. > :07:34.business stories. Qantas is being told by Australia's Prime Minister
:07:34. > :07:40.to sort out its dispute with unions. The pressure is on. We cross to
:07:40. > :07:46.Singapore. You have been speaking about these today. What has been
:07:46. > :07:54.going on? The Prime Minister Julia Gillard has weighed in and said
:07:54. > :07:58.that there strikes, they could cost jobs. A union representing
:07:58. > :08:04.engineers of the airline, that his meeting with Qantas management for
:08:04. > :08:09.mediation. This is still happening in the city of Melbourne. I earlier
:08:09. > :08:14.spoke with Peter Somerville of the engineers Association, the union,
:08:14. > :08:18.and he gave me their position. Let's not forget what is to speed
:08:18. > :08:22.is all about - squanders axing 1,000 Australian jobs and ascending
:08:23. > :08:28.air operations offshore. It is about Qantas seeking the chief
:08:28. > :08:32.Peres and not best maintenance. -- cheapest. The background to all of
:08:32. > :08:37.this is that Qantas wants to expand in Asia. Including right here in
:08:38. > :08:42.Singapore. As we have just read, 1,000 jobs in Australia could be
:08:42. > :08:48.affected according to the union. They are very unhappy about this.
:08:48. > :08:54.Industrial action has started. Qantas has decided to run less
:08:54. > :09:00.flights and this could affect hundreds of flights. We will keep
:09:00. > :09:03.an eye on that story, we have had to leave it Air Force. Jenny is
:09:03. > :09:07.expected to slash its economic growth forecast the next year when
:09:07. > :09:12.it publishes updated figures. Berlin has been predicting growth
:09:12. > :09:16.of just under 2% but the country's leading think tank cut their own
:09:16. > :09:22.forecast to just less than 1% as the debt crisis increasingly takes
:09:22. > :09:28.its toll on the region's largest economy. Format UBS trader Quade
:09:28. > :09:33.re- Adoboli appears as any of London magistrates' courts today.
:09:33. > :09:38.Fuego. He was charged over an alleged road trade which cost the
:09:38. > :09:45.Swiss bank and alleged to on a $0.5 million which may into the
:09:46. > :09:51.resignation of several figures. The markets in Asia, they had a testing
:09:51. > :09:55.these latest news from EU leaders out of Frankfurt. -- digesting. The