:00:07. > :00:17.daughter to sit on the throne ahead of younger brothers. Time for World
:00:17. > :00:20.
:00:20. > :00:28.Welcome. Ahead of the eurozone bail-out fund holds talks in
:00:28. > :00:35.Beijing. Europe eyes China's cash pile.
:00:35. > :00:41.The rescue deal it is set for the best deal in two years were stopped
:00:41. > :00:51.Qantas says industrial action has costed more than $70 million as it
:00:51. > :00:53.
:00:53. > :00:58.faces a shareholder meeting. The head of the bail-out fund is in
:00:58. > :01:02.Beijing, trying to persuade the Chinese government to help beat it
:01:03. > :01:08.-- he's the eurozone debt crisis. They were to expand the fund to 1
:01:08. > :01:13.trillion. This will continue to support indebted governments. They
:01:13. > :01:19.are looking to raise much of the cash from emerging economies like
:01:19. > :01:24.China. China's past decade of industrial
:01:24. > :01:30.growth has earned at 3.2 trillion dollars in foreign reserves. That
:01:30. > :01:39.makes it a prime target for the EU which needs extra cash to boost the
:01:39. > :01:43.firepower of their bail-out fund. Where else can you turn to? US is
:01:43. > :01:50.all -- is already struggling with their own crisis. They have a
:01:50. > :01:54.higher unemployment rate. In Asia you have China and India. He had a
:01:54. > :02:04.large pool of financial resources to be used for the benefit of
:02:04. > :02:05.
:02:05. > :02:10.Europe. Since the start of this year, China has been buying modest
:02:10. > :02:15.amounts of eurobond. But the head of the stability fund is in Beijing
:02:15. > :02:18.to sell a much grander bail-out scheme. The plan is to set up a
:02:18. > :02:22.special investment vehicle which will raise money from China and
:02:22. > :02:26.other cash-rich States by selling them Bonn's. The cash raised will
:02:26. > :02:36.act as a back-up to the money currently held by the stability
:02:36. > :02:37.
:02:37. > :02:42.fund. This will enable that -- of the fund to help other countries.
:02:42. > :02:48.Brazil and India have recently said they are not prepared to take part
:02:48. > :02:55.in a big European bail-out. They do not feel they have the skills or
:02:55. > :02:58.the resources to help develop economies. From their perspective,
:02:58. > :03:04.the developed economies can do more to sort themselves out rather than
:03:04. > :03:14.turning to others. EU leaders in the scheme will be more credible if
:03:14. > :03:18.
:03:18. > :03:21.it were administered by the IMF. The Asian markets have been
:03:21. > :03:31.watching very closely. They have been rallying strongly since the
:03:31. > :03:34.
:03:34. > :03:38.deal. No small amount of relief. A great deal of relief. Stocks have
:03:39. > :03:46.climbed this Friday. Are they have extended their gains from yesterday
:03:46. > :03:54.after news of the bail-out fund first broke. Relief over the course
:03:54. > :03:58.of the last day. They are set for the best weekly rally since 2009.
:03:58. > :04:06.This is due to the European agreement -- European agreement to
:04:06. > :04:11.stem the debt crisis. It has renewed confidence in the European
:04:11. > :04:15.economy. There were fears that the debt crisis may hurt growth in
:04:16. > :04:22.Europe and turned Christ -- demand for Asian exports. We heard Sarkozy
:04:22. > :04:27.said China will co-operate closely to help contribute. He has had a
:04:27. > :04:31.phone conversation with his counterpart. The head of the
:04:32. > :04:37.European stability fund is in Beijing. There were also other
:04:37. > :04:42.factors at work. It was not just about Europe. In Japan, their days
:04:42. > :04:48.for Sony which rose because it split from its mobile phone
:04:48. > :04:56.partnership with Ericsson. Sony had agreed to by Erickson's 50% stake
:04:56. > :05:04.in the mobile phone venture to integrate its smart phone business.
:05:04. > :05:07.Gains for Sony up about 2%. Chinese bank share is also rising,
:05:07. > :05:15.especially those of Industrial and Commercial Bank of China. It is the
:05:15. > :05:25.world's largest lender in market belly. Its profits climbed 28%. The
:05:25. > :05:34.
:05:34. > :05:40.Bank of communication was gaining. It rose over 30%.
:05:40. > :05:43.Thank you. Qantas Airways says ongoing labour unrest has cost it
:05:43. > :05:47.more than $70 million. It has seen a dive in bookings ahead of the
:05:47. > :05:55.Christmas period. Australia's national carrier has been hit by
:05:55. > :06:00.another strike is Friday. -- this Friday.
:06:00. > :06:07.The meeting could be called the annual grumble meeting. The planes
:06:07. > :06:11.are flying but they are facing many complaints. Air is a sense of the
:06:11. > :06:16.companies under siege. Shareholders have gone two years without a
:06:16. > :06:20.dividend. The share price has dropped 40% this year. Unions are
:06:20. > :06:27.taking industrial action over pay and conditions and plans to
:06:27. > :06:37.outsource jobs in Asia. The pay package of Alan joys is also under
:06:37. > :06:38.
:06:38. > :06:42.scrutiny. His salary has jumped from three to $5 million. Qantas is
:06:42. > :06:46.hoping the expansion plan is to Asia will find enough support to
:06:46. > :06:50.keep the beget shareholders satisfied. They want to lodge a
:06:50. > :06:56.premium airline in Singapore or Malaysia and expand its Jetstar
:06:56. > :07:06.operation in Japan and elsewhere. The current round of strike action
:07:06. > :07:12.
:07:12. > :07:16.may have cost the company up to $20 million.
:07:16. > :07:26.Let us turn our thoughts to the market reaction. It has been
:07:26. > :07:26.
:07:26. > :08:12.Apology for the loss of subtitles for 45 seconds
:08:12. > :08:19.How long the think is a market reaction will be sustained, what
:08:19. > :08:27.could see it ebbed away? It is not too different from what we have had
:08:27. > :08:34.before. The scepticism has been there before. We are not really far
:08:34. > :08:39.along from that. We do not know where this money will come from. It
:08:39. > :08:44.is a short-term thing. We had good earnings yesterday. There was the
:08:44. > :08:48.feeling that things were looking brighter. But we will be in the
:08:48. > :08:54.same situation. We need more details to be able to continue this
:08:54. > :08:58.could trend. Where is the money coming from? Let us look at the
:08:58. > :09:03.backs. The idea is they raised an excess of 100 billion euros in
:09:03. > :09:10.capital. The markets may not be receptive to the banks in trying to
:09:10. > :09:15.issue more shares. Would you agree? Yes. This is the issue to start off
:09:15. > :09:23.with. A lot of bad a say they can go out alone. No-one necessarily
:09:24. > :09:33.believes his. -- banks. It seemed doomed to fail to start off with
:09:34. > :09:38.