:00:17. > :00:23.Al-Qaeda sympathiser. You are with World Business Report.
:00:23. > :00:28.Here are the headlines: 1.2 trillion reasons to be worried. The
:00:28. > :00:34.West sued the committee failed to agree on a buzzard -- budget terms.
:00:34. > :00:43.Six regions to be cheerful. The way was cleared for urgent economic
:00:43. > :00:51.reforms and Spain. Not so cheerful and Asia. Exporters are starting to
:00:51. > :00:55.be effective in the region. Have -- affected.
:00:55. > :01:00.US politicians looks set to admit failure to agree on 1.2 trillion
:01:00. > :01:04.dollars worth of essential budget cuts. In recent weeks the US has
:01:04. > :01:13.called on European counterparts to act swiftly to end the eurozone
:01:14. > :01:21.debt crisis. They now face a crisis of their own. The US has a budget
:01:21. > :01:28.debt of 15 trillion dollars. It is 99% of its national wealth.
:01:28. > :01:32.The US Senate's chaplain tried to summon divine help. The 12 member
:01:32. > :01:42.panel has just a few days to come up with 1.2 trillion dollars worth
:01:42. > :01:43.
:01:43. > :01:48.of cuts. Guide the super committee in its challenging work. But it
:01:48. > :01:53.might just take a miracle to allow the divided lawmakers to agree. The
:01:53. > :02:02.Democrats wanted balance of taxes and government cuts. The opposition
:02:02. > :02:08.Republicans have refused to give much on taxes. They faced a similar
:02:08. > :02:14.to -- their lock in July. That political gamesmanship has really
:02:14. > :02:24.hurt businesses. It could happen again. How politicians are not
:02:24. > :02:31.doing what they were elected to do. It is turning into nothing. I feel
:02:31. > :02:37.that heads consumer confidence. It has hurt businesses. Those sales
:02:37. > :02:43.are not coming in. It is not just a hit to consumer and business
:02:43. > :02:47.confidence. Some say the US is treading a dangerous path. If we do
:02:47. > :02:54.not do something we are heading down a road that could lead to a
:02:54. > :03:00.crisis situation. A really terrible sovereign debt crisis. We do not
:03:00. > :03:05.have ten years. It could occur next month. So far the markets have not
:03:05. > :03:09.punished America for their fiscal problems as they had in Europe.
:03:09. > :03:15.With another political failure so close there is some point where the
:03:15. > :03:20.markets will lose patience. We will stop being part of the
:03:20. > :03:23.problem and become part of the solution, those are the words from
:03:23. > :03:29.Spain's new Prime Minister let. He warned there would be no miracles
:03:29. > :03:39.ahead as the country came to grips with its huge debts. There are
:03:39. > :03:45.signs of optimism on the market. We will now get some perspective on
:03:45. > :03:49.this result. It was a result we for all expecting. Tell us a bit more
:03:49. > :03:58.about this man in charge? market has been looking for this
:03:58. > :04:02.sort of assault. It is in line with market expectations. The party has
:04:02. > :04:10.been responsible in the past for helping to reduce budget deficits
:04:10. > :04:18.during the time of the march of the euro. This has become mass of the
:04:18. > :04:22.more complex. He would seem to be the right sort of pro-European
:04:22. > :04:32.after within the context of the widespread political change that we
:04:32. > :04:33.
:04:33. > :04:40.need. Tell us about Spain and the challenges he faces. There is a
:04:40. > :04:48.terrible statistic that Spain about the young people, 40% of them out
:04:48. > :04:53.of jobs. Youth unemployment is significantly higher. The question
:04:53. > :04:58.in Spain is competitiveness. There is the need to reduce the budget
:04:58. > :05:06.deficit. The current trend is quite bad. It is significantly better
:05:06. > :05:14.than its European neighbours. 70% to GDP. Compare that to Greece
:05:14. > :05:17.which is 140 %. The markets are not reacting to the overall debt to GDP
:05:17. > :05:22.levels, the other in that the problems that Spain has with
:05:22. > :05:32.unemployment, competitiveness, the banking system. Other areas where
:05:32. > :05:34.
:05:34. > :05:41.it has been going to have a very difficult time getting its credit.
:05:41. > :05:46.Thank you for coming in. We will be keeping an eye on how the new Prime
:05:46. > :05:53.Minister takes the helm. Time to go to Asia. We are on to the bad news.
:05:53. > :06:01.The region's second largest economy has not particularly healthy trade.
:06:01. > :06:05.Tell us more about Japan? Exports from there are forming --
:06:05. > :06:10.performing worse than expected. Down 4%. This is the first fall in
:06:10. > :06:14.three months. That is worrying analysts. Just last month we got
:06:14. > :06:19.strong figures from Japan. People thought that things were going back
:06:19. > :06:25.to normal. The debt crisis in Europe is starting to affect demand
:06:25. > :06:35.for products in Japan. We also heard from authorities in Singapore
:06:35. > :06:39.revised their growth forecast to just a few %. The economy here grew
:06:39. > :06:44.more than 15% last year. It was expected to grow more than 5% this
:06:44. > :06:48.year as well. Indonesia and Thailand are also revising down
:06:48. > :06:54.their gross figures. It seems like economic problems in Europe are
:06:54. > :07:00.starting to affect Asia. understand the yen has gotten
:07:00. > :07:04.stronger as the result of this news? That is right. Exports have
:07:04. > :07:12.fallen because of this news. In the currency markets the yen has been
:07:12. > :07:16.strengthening. The move has been quite limited because traders have
:07:16. > :07:21.been quite cautious about potential intervention by the government.
:07:21. > :07:26.Authorities have intervened three times this year. Most recently at
:07:26. > :07:32.the end of October. That is why the news has been quite limited. But
:07:32. > :07:37.the new -- yen has been run at -- Stephanie. Time for some corporate
:07:37. > :07:42.news. Hewlett-Packard has -- is going to rip reveal its earnings
:07:42. > :07:49.later on. Its stock market has plunged more than a quarter in the
:07:49. > :07:59.last few months. Its third chief executive in 15 months is having
:07:59. > :07:59.
:07:59. > :08:07.some success in turning around to. The company was started in a small
:08:07. > :08:11.garage in 1939. Walt Disney was an early customer. The disarray and up
:08:11. > :08:21.he'll be in the boardroom since last year would not have the look
:08:21. > :08:25.
:08:26. > :08:30.out of place in a car up to. -- cartoon. Meg Whitman believes there
:08:30. > :08:36.is still money in making PCs despite slim profit margins in a
:08:36. > :08:40.sector that is very competitive. The shareholders need reassurance
:08:40. > :08:44.and there will not be distracted from the profitable business of
:08:44. > :08:50.manufacturing services. Another key challenge for her leadership will
:08:50. > :08:55.be encouraging innovation. The very essence is very important to the
:08:55. > :09:02.company. That is innovation through internal research and development.
:09:02. > :09:12.She needs to restore that. Page p at its most successful has done a
:09:12. > :09:13.
:09:13. > :09:18.lot from within it rather than shopping innovations. A successful
:09:18. > :09:26.innovation as executive of it eBay has shown that she has
:09:26. > :09:31.understanding of this. Her decision to ensure that Hewlett-Packard
:09:31. > :09:38.remains a builder of computers has reassured investors. But it is a
:09:38. > :09:44.very competitive industry. The real challenge for HP and the board is