:00:03. > :00:13.secure a more secure future. Those at the latest headlines from BBC
:00:13. > :00:15.
:00:15. > :00:21.News. We now have the latest financial news. This is World
:00:21. > :00:25.Business Report. The headlines: Cash is king, investors seek the
:00:25. > :00:32.safest of havens after Germany failed to attract enough buyers for
:00:32. > :00:42.its bombs. News from Germany affecting Asia markets as well, the
:00:42. > :00:44.
:00:44. > :00:51.Nikkei hitting a 2.5 year low. The cost of the crisis. A nation
:00:51. > :00:58.battles with austerity. Good to have you with us. A first-class
:00:58. > :01:02.ticket on the Titanic, that is how one reporter characterised
:01:02. > :01:08.Germany's Position after its least successful bond sale since the
:01:08. > :01:13.launch of the euro. It failed to persuade investors to buy two-
:01:13. > :01:17.thirds of the debt on offer yesterday. Investors no longer see
:01:18. > :01:25.Germany as immune from the eurozone debt crisis. That has made a fresh
:01:25. > :01:35.bout of nerves on battled financial markets. In Asia we see a mixed
:01:35. > :01:38.picture emerged. The Nikkei is down by 1.6%. Let me show you what
:01:38. > :01:47.happened on the Dow Jones. This is mainly because of what happened in
:01:47. > :01:56.Germany. The lacklustre sale of ten-year bonds. The Dow is down by
:01:56. > :02:03.2%. Serious losses. Let's go to Singapore for more details on yet
:02:03. > :02:10.another volatile day for investors. It has been an extremely volatile
:02:10. > :02:17.day in Asia. The Nikkei has fallen even further. The lowest level in
:02:17. > :02:22.2.5 years in April 2009. There are a few reasons for this. You mention
:02:22. > :02:32.of Germany's bond sale, that is affecting investor sentiment in
:02:32. > :02:35.
:02:35. > :02:45.Japan. There is weak manufacturing data. That is affecting exporters
:02:45. > :02:45.
:02:45. > :02:50.shares in Japan. The Japanese yen is rising against the US dollar.
:02:50. > :03:00.That is more bad news for exporters as well. That is the reason why
:03:00. > :03:04.
:03:04. > :03:13.Nikkei has hit a 2.5 kilo. -- year low. We are looking at the numbers
:03:13. > :03:18.on the screen. Those are the share markets. Tell us about oil. In New
:03:18. > :03:24.York oil prices slipped 2% because of the Bonn sale news coming out of
:03:24. > :03:31.Germany. It is recovering slightly in Asia trade. It has been an
:03:31. > :03:41.extremely volatile day. Traders are seen that bad news from China, US
:03:41. > :03:46.
:03:46. > :03:53.and Europe. -- seeing. Thank you. Chancellor Angela Merkel and
:03:53. > :04:03.Nicolas Sarkozy will be meeting Mario Monti, who is in his new role
:04:03. > :04:09.
:04:10. > :04:17.as Italian Prime Minister. That sale yesterday for Germany, it was
:04:17. > :04:22.a bit of a surprise? It was a shock. We are used to bad news, but that
:04:22. > :04:28.was quite an unexpected confidence blow. It shows two things. Europe
:04:28. > :04:37.is no longer - the strongest economy is no longer immune to the
:04:37. > :04:45.contagion of the crisis. It also indicates that this is a crisis
:04:45. > :04:51.that is badly in need of a remedy. Do you think that will put the
:04:51. > :04:54.pressure on Angela Merkel to change her stance? She has been so staunch
:04:54. > :04:59.that the European Central Bank will not become the lender of last
:04:59. > :05:06.resort. The European financial stability fund may not be enlarged
:05:07. > :05:16.to the agree that some are calling for. Absolutely. It is running out
:05:16. > :05:24.of time. Europe's strongest economy, the most credible government cannot
:05:24. > :05:31.raise funds in the market. What help is there for everyone else?
:05:31. > :05:35.This has sent off alarm signals that European leaders have got to
:05:35. > :05:41.change. Let's talk about this meeting between Mario Monti and
:05:41. > :05:50.Angela Merkel and Nicolas Sarkozy. Italy is very critical, it has yet
:05:50. > :05:58.to receive a bail-out, it has a new government in place. It is critical.
:05:58. > :06:05.What I think they will be debating is how to reunified Europe. We have
:06:05. > :06:14.this financial disintegration. Europe needs a political solution
:06:14. > :06:19.and badly. The three largest economies need to agree to a common
:06:19. > :06:29.way forward. That is what has been lacking so far. Do you have
:06:29. > :06:32.confidence in them? Are you an optimist in this scenario? I think
:06:32. > :06:37.we are seeing the end of the monetary union as we have known it
:06:37. > :06:47.for the last decade. I hope we are seeking a new stronger monetary
:06:47. > :06:52.
:06:52. > :07:00.union. -- seeing. It can be sustainable on the basis of fiscal
:07:00. > :07:05.integration. Thank you for your thoughts. Let's go to Portugal. A
:07:05. > :07:11.general strike is getting underway there. Much of the public transport
:07:11. > :07:16.as well as hospitals and schools are going to be closed or hard hit.
:07:16. > :07:21.Portugal must meet EU conditions for a 78 billion euros bail-out.
:07:21. > :07:28.Workers are protesting against the tough austerity measures which they
:07:28. > :07:33.say are imposed on them by technocrats in Brussels. Midnight
:07:33. > :07:39.on Wednesday, Portugal's general strike will hit public-sector
:07:39. > :07:45.workplaces. The action was announced in October, giving active
:07:45. > :07:51.has plenty of time to ensure its impact. Officials for the largest
:07:51. > :07:59.union federation are bullish about this and future protests. If the
:07:59. > :08:09.government decides to go on with its policies, yes, Forshaw, we will
:08:09. > :08:09.
:08:09. > :08:15.continue to fight against them. -- for sure. We want the agreement
:08:15. > :08:23.that was established between the government and the strikers. This
:08:23. > :08:29.is only the third general stoppage in four decades of democracy. Many
:08:29. > :08:37.Portuguese are not convinced. Everything will remain as if.
:08:37. > :08:46.Greece went on to two strikes per week, it has not helped them.
:08:46. > :08:51.Portuguese need to work rather than strike. Holiday and Christmas
:08:51. > :08:56.bonuses will be suspended to most state employees. Even if it manages
:08:56. > :09:01.to implement its budget, a long hard road lies ahead. Portugal
:09:01. > :09:04.needs to do a lot to regain competitiveness. A lot of that is
:09:04. > :09:09.in terms of labour costs. The government is cutting wages and the
:09:09. > :09:14.private sector will have to follow. People are finding it difficult to
:09:14. > :09:23.get credit and refinements their mortgages. It takes a huge social
:09:23. > :09:29.toll on people and put pressure on the government. Meanwhile, as state
:09:29. > :09:33.spending is cut, Portugal's welfare safety net becomes full of holes.