28/10/2011 World Business Report

daughter to sit on the throne ahead of younger brothers. Time for World

Welcome. Ahead of the eurozone bail-out fund holds talks in

Beijing. Europe eyes China's cash pile.

The rescue deal it is set for the best deal in two years were stopped

Qantas says industrial action has costed more than $70 million as it

faces a shareholder meeting. The head of the bail-out fund is in

Beijing, trying to persuade the Chinese government to help beat it

-- he's the eurozone debt crisis. They were to expand the fund to 1

trillion. This will continue to support indebted governments. They

are looking to raise much of the cash from emerging economies like

China. China's past decade of industrial

growth has earned at 3.2 trillion dollars in foreign reserves. That

makes it a prime target for the EU which needs extra cash to boost the

firepower of their bail-out fund. Where else can you turn to? US is

all -- is already struggling with their own crisis. They have a

higher unemployment rate. In Asia you have China and India. He had a

large pool of financial resources to be used for the benefit of

Europe. Since the start of this year, China has been buying modest

amounts of eurobond. But the head of the stability fund is in Beijing

to sell a much grander bail-out scheme. The plan is to set up a

special investment vehicle which will raise money from China and

other cash-rich States by selling them Bonn's. The cash raised will

act as a back-up to the money currently held by the stability

fund. This will enable that -- of the fund to help other countries.

Brazil and India have recently said they are not prepared to take part

in a big European bail-out. They do not feel they have the skills or

the resources to help develop economies. From their perspective,

the developed economies can do more to sort themselves out rather than

turning to others. EU leaders in the scheme will be more credible if

it were administered by the IMF. The Asian markets have been

watching very closely. They have been rallying strongly since the

deal. No small amount of relief. A great deal of relief. Stocks have

climbed this Friday. Are they have extended their gains from yesterday

after news of the bail-out fund first broke. Relief over the course

of the last day. They are set for the best weekly rally since 2009.

This is due to the European agreement -- European agreement to

stem the debt crisis. It has renewed confidence in the European

economy. There were fears that the debt crisis may hurt growth in

Europe and turned Christ -- demand for Asian exports. We heard Sarkozy

said China will co-operate closely to help contribute. He has had a

phone conversation with his counterpart. The head of the

European stability fund is in Beijing. There were also other

factors at work. It was not just about Europe. In Japan, their days

for Sony which rose because it split from its mobile phone

partnership with Ericsson. Sony had agreed to by Erickson's 50% stake

in the mobile phone venture to integrate its smart phone business.

Gains for Sony up about 2%. Chinese bank share is also rising,

especially those of Industrial and Commercial Bank of China. It is the

world's largest lender in market belly. Its profits climbed 28%. The

Bank of communication was gaining. It rose over 30%.

Thank you. Qantas Airways says ongoing labour unrest has cost it

more than $70 million. It has seen a dive in bookings ahead of the

Christmas period. Australia's national carrier has been hit by

another strike is Friday. -- this Friday.

The meeting could be called the annual grumble meeting. The planes

are flying but they are facing many complaints. Air is a sense of the

companies under siege. Shareholders have gone two years without a

dividend. The share price has dropped 40% this year. Unions are

taking industrial action over pay and conditions and plans to

outsource jobs in Asia. The pay package of Alan joys is also under

scrutiny. His salary has jumped from three to $5 million. Qantas is

hoping the expansion plan is to Asia will find enough support to

keep the beget shareholders satisfied. They want to lodge a

premium airline in Singapore or Malaysia and expand its Jetstar

operation in Japan and elsewhere. The current round of strike action

may have cost the company up to $20 million.

Let us turn our thoughts to the market reaction. It has been

Apology for the loss of subtitles for 45 seconds

How long the think is a market reaction will be sustained, what

could see it ebbed away? It is not too different from what we have had

before. The scepticism has been there before. We are not really far

along from that. We do not know where this money will come from. It

is a short-term thing. We had good earnings yesterday. There was the

feeling that things were looking brighter. But we will be in the

same situation. We need more details to be able to continue this

could trend. Where is the money coming from? Let us look at the

backs. The idea is they raised an excess of 100 billion euros in

capital. The markets may not be receptive to the banks in trying to

issue more shares. Would you agree? Yes. This is the issue to start off

with. A lot of bad a say they can go out alone. No-one necessarily

believes his. -- banks. It seemed doomed to fail to start off with