:00:05. > :00:15.for three years in the early 1970s. For the latest financial news, it
:00:15. > :00:21.
:00:21. > :00:31.is titled World Business Report. -- The headlines: Italy in peril.
:00:31. > :00:31.
:00:31. > :00:35.Borrowing costs soar ahead of a key vote in parliament.
:00:35. > :00:41.Olympus admits controversial acquisitions we used to cover up
:00:41. > :00:51.for major losses on securities investments dating back to the
:00:51. > :00:56.
:00:56. > :01:00.As you have been hearing, it is likely to be another volatile day
:01:00. > :01:05.for the financial markets. On Monday, the cost of borrowing for
:01:05. > :01:09.Italy surge to the highest level since 1997. Investors are
:01:09. > :01:14.increasingly concerned about Italy's huge debt burden. It stands
:01:14. > :01:17.at more than two trillion dollars and needs constant refinancing. The
:01:17. > :01:22.Prime Minister has made promises to cut their debt, but his government
:01:22. > :01:27.is weak and investors pinkies are likely to deliver much reform. We
:01:27. > :01:37.will find out how we key is today when Parliament votes on a state
:01:37. > :01:43.
:01:43. > :01:53.First of all, tell us what you think the outcome of this boat will
:01:53. > :02:03.be today? It is very likely that he will receive a vote. It has been
:02:03. > :02:04.
:02:04. > :02:10.needed for weeks. Two weeks ago, the bird was negatived. -- vote. In
:02:10. > :02:18.any case, it is very likely that this is the end of the Berlusconi
:02:18. > :02:25.government. Tell us more about that. Why will he move on? At the moment,
:02:25. > :02:32.he sounds adamant that he is staying in power. He is staying in
:02:32. > :02:41.power just because you receive some loans from people who were
:02:41. > :02:50.airlifted in different parties. It seems that many people are shifting
:02:50. > :02:57.to a new situation in order to end March the majority. Reforms are
:02:57. > :03:05.needed. What is your outlook for the Italian economy? There is a lot
:03:05. > :03:15.of concern about its debt. 120 % debt to GDP ratio. Boring plus a
:03:15. > :03:16.
:03:16. > :03:24.climbing every day -- borrowing costs are. We need private and
:03:25. > :03:29.public assets to cover the dead. It could be possible to cope with this
:03:29. > :03:39.dead in the medium term, but to do that, uni to have a stronger
:03:39. > :03:45.
:03:45. > :03:50.majority, otherwise it is As we hear about those birds, we
:03:50. > :03:53.will make sure you know about it. Let's talk about this company. It
:03:53. > :03:59.has taken almost a month, but the best and shed some light on
:03:59. > :04:07.mysterious payments worth almost $700 million --: Pass. The payments
:04:07. > :04:12.were questioned by the CNET, who was then fired. Today, the company
:04:13. > :04:22.has given us an insight as to what was happening.
:04:23. > :04:25.
:04:25. > :04:31.They are finally coming clean? Some major additions to date. Opus
:04:31. > :04:35.as added shares cut by about 30%. For the first time, the company
:04:35. > :04:42.president said that controversial acquisitions we used to cover up
:04:42. > :04:49.losses in investments dating back to the 1980s. He has blamed several
:04:49. > :04:56.company officials, including the former president. The revelations
:04:56. > :05:00.also appeared to have indicated the ex CEO, who has staged a public
:05:00. > :05:06.campaign to force the company to come clean on these questionable
:05:06. > :05:14.transactions. When you speak with lawyers and analysts, they say the
:05:14. > :05:19.disclosure it could be the company opened a criminal charges for
:05:19. > :05:24.suspected fraud. It will now be investigated.
:05:24. > :05:32.The story has raised a lot of questions about corporate Japan.
:05:32. > :05:40.Will this have any impact on governance in Japan?
:05:40. > :05:45.At this point, it is still open for question. It is an eye-opening
:05:45. > :05:50.event that exposes the problems of corporate governance in the country.
:05:50. > :05:56.Some have complained that many Japanese firms are our style to
:05:56. > :06:02.reforms. Regulators are mediocre. Few foreigners serve on Japanese
:06:02. > :06:12.ports. The proportion of women is at 1%, even less than Kuwait. A
:06:12. > :06:14.
:06:14. > :06:24.recent survey ranked Japan very local corporate governance. --
:06:24. > :06:25.
:06:25. > :06:33.clothes. Still a lot of work to be Year's debt crisis causing turmoil
:06:33. > :06:38.For the region's banks -- Europe's. We will find out how bad the
:06:38. > :06:43.situation is all fronts's second biggest bank paid up. Our
:06:44. > :06:48.correspondent has more. It is far from alone in French
:06:48. > :06:52.banks now struggling with its credit standing. The shine has come
:06:52. > :06:59.off the bank. It has recovered from a trading scandal, but it has to
:06:59. > :07:08.prove to the rest of the will Bennett can write down its exposure
:07:08. > :07:12.to European debts. It all means more cost-cutting. Its competitor
:07:12. > :07:18.announced its results on Thursday and it is in a similar position,
:07:18. > :07:23.with rumoured job losses to come in its investment banking arm. Until
:07:23. > :07:33.now, much of the attention has been on bank exposure to Greece. In fact,
:07:33. > :07:37.
:07:37. > :07:41.now it is moving at two more This analyst says a Bank has made a
:07:41. > :07:49.start on cutting its exposure to Italy, the country where the French
:07:49. > :07:56.bank may be glad it has the build such a large presence. It is small
:07:56. > :08:06.in terms of the sovereign debt holdings. Other banks had built up
:08:06. > :08:07.
:08:07. > :08:11.operations there and port operations. They do have sizable
:08:11. > :08:17.operations there. If you have prolonged economic recession in
:08:17. > :08:21.Italy, it is important for both other banks. It is a tricky time
:08:21. > :08:24.for all the French banks. The Finance Minister has just said they
:08:24. > :08:31.should all consider cutting bonuses in dividends to help pay towards
:08:31. > :08:35.boosting their reserves. From July of next year, Australian
:08:35. > :08:40.business will have to pay for emitting carbon dioxide. Parliament
:08:40. > :08:43.passed laws that will introduce a carbon pricing system. The vote is
:08:43. > :08:50.a major victory for the Prime Minister, who staked her
:08:50. > :08:53.government's future on establishing the tax. The country's top 500
:08:53. > :08:57.polluters will have to pay a fixed price for every tonne of carbonate
:08:57. > :09:04.in it. Almost 1 billion barrels of oil has
:09:04. > :09:07.been found in the west of Argentina. It is thought the finding could
:09:07. > :09:12.turn the country into a net exporter of oil.
:09:12. > :09:20.Honda's were but has had an upgrade. It can now run faster and balance
:09:20. > :09:23.better. Honda demonstrated it in Tokyo today. It has also cut in
:09:23. > :09:30.pretence. Honda says there are no plans to build commercial versions
:09:30. > :09:35.of the robot. It is hard to believe there is not a little person inside
:09:35. > :09:43.there. These are the markets. Japan has a