:00:06. > :00:16.capped 85 times. Now for the latest financial news with World Business
:00:16. > :00:22.
:00:22. > :00:29.Report. The headlines: Optimism or fantasy, the euro gained ground on
:00:29. > :00:37.hopes of action over the debt crisis. Production at Thailand's
:00:37. > :00:45.factories slumps in October. Australian carrier Qantas is
:00:45. > :00:55.forecasting further earnings strikes and a slashing of proper
:00:55. > :00:56.
:00:56. > :01:03.stability by 50%. -- profitability. We start with optimism in Europe
:01:03. > :01:06.this week. The situation could not have been worse at the end of last
:01:06. > :01:16.week when many commentators forecast the end of the euro as the
:01:16. > :01:22.cost of borrowing soared for Spain. The Italian newspapers said that
:01:22. > :01:26.the IMF is preparing an $800 billion loan for Italy which would
:01:26. > :01:30.give the new government 18 months to work on its finances without
:01:30. > :01:34.having to borrow from the money markets. The German Finance
:01:34. > :01:41.Minister has been talking about a fast-track for countries which want
:01:41. > :01:49.to form a closer union. Countries which join the stability union
:01:49. > :01:55.would sign up for much tighter controls over their budgets. We
:01:55. > :02:00.speak to a senior director of a financial trading group. We are
:02:00. > :02:08.starting with optimism in the new week. What he make of all the
:02:08. > :02:13.stories? The first thing I think about is the story of the IMF
:02:13. > :02:19.providing massive support for Italy. Does that mean they will also
:02:19. > :02:25.provide the same support for Spain? These are huge numbers we are
:02:25. > :02:33.talking about. Is that to be done in conjunction with the European
:02:33. > :02:38.Union and the bail-out fund? These things are still unclear. They are
:02:38. > :02:41.causing me to wonder about how well this has been co-ordinated. If
:02:41. > :02:49.there is going to be that kind of lending, does that mean that
:02:49. > :02:53.Germany needs to provide more for the stability fund? If so, that
:02:53. > :03:03.will open up the existing German political wins about the amount
:03:03. > :03:06.
:03:06. > :03:10.that has already been provided. -- German political wounds. The reason
:03:10. > :03:19.that the euro is up this morning is the market's hearing the kind of
:03:19. > :03:25.thing they want to hear. Let's get the trees behind the story first.
:03:25. > :03:30.Be figures are huge and the $800 billion is a lot more than these in
:03:30. > :03:34.the bail-out fund at the moment. awful lot more. The markets are
:03:34. > :03:41.saying they are looking at the fact that European policy makers are
:03:41. > :03:45.taking steps to stem the crisis. Let's talk about this closer union,
:03:45. > :03:52.closer monetary union, the ideas coming from Germany. Is that
:03:52. > :03:58.something that can be put into practice quickly? We have the
:03:58. > :04:08.meeting on 9th December as the next deadline in this process. I am
:04:08. > :04:22.
:04:22. > :04:27.Markets what will the stability pact actually provide? In return
:04:27. > :04:33.for greater oversight and giving up national financial sovereignty,
:04:33. > :04:38.what will countries be able to get? What we saw clearly last week was
:04:38. > :04:44.confidence in the euro as a whole system beginning to evaporate. That
:04:44. > :04:50.was most clearly illustrated by the failure of the German bond auction.
:04:50. > :04:55.If there is something to replace that, well and good. The second
:04:55. > :05:00.thing he is, is the ECB going to be allowed to rescue European
:05:00. > :05:10.countries in the form of quantitative easing? Thank you for
:05:10. > :05:10.
:05:10. > :05:16.now. We take you to Thailand now. One of a share's most important
:05:16. > :05:22.industrial centres. Serious flooding has shut down a lot of
:05:22. > :05:26.businesses and data for October is worse than expected. We gave to our
:05:26. > :05:33.Singapore euro. We were expecting bad news, but this is worse than
:05:33. > :05:43.that. That's right. Out port saw a very
:05:43. > :05:46.
:05:46. > :05:53.steep drop of 36%. -- output. Severe flooding forced the closure
:05:53. > :06:01.of seven industrial estates in October. This caused supply chain
:06:01. > :06:11.disruption affecting the power and electronics industries. Thailand is
:06:11. > :06:12.
:06:12. > :06:16.the world's second biggest producer of hard disks. It will still take
:06:16. > :06:21.months for some factories, especially the technology
:06:21. > :06:31.facilities, to resume output. Supply disruption is expected to
:06:31. > :06:33.
:06:33. > :06:40.continue. The Bank of Thailand forecasts a loss of $6 billion. GDP
:06:40. > :06:46.growth will also suffer a big loss. Tell us about the ongoing drama at
:06:46. > :06:53.Qantas between management and unions. What is the latest?
:06:53. > :06:56.They at giving a profit warning. The Australian carrier is warning
:06:56. > :07:00.shareholders and the markets that it will experience a steep fall in
:07:00. > :07:05.the first half of its earnings season. They say profitability
:07:05. > :07:13.could drop by 50% due to strikes, the grounding of the fleet and high
:07:13. > :07:18.fuel bills. The second half outlook does not look any better. Qantas
:07:18. > :07:24.says the situation remains volatile, give in the global economic
:07:24. > :07:27.uncertainty, fuel prices and poor exchange rates. But on the flipside
:07:27. > :07:36.the airline says that despite suspending flights for two days
:07:36. > :07:43.last month they said the move had paid off with international forward
:07:43. > :07:49.bookings back to normal. Other stories: Early indications
:07:49. > :07:58.point to a strong Tark to the holiday shopping season in the UK.
:07:58. > :08:04.-- a strong start. The average spend per person was $400, up 9% on
:08:04. > :08:09.last year. Airlines that use Heathrow are making preparations
:08:09. > :08:15.for disruption on Wednesday. A strike by public sector workers is
:08:15. > :08:22.likely to create serious delays in immigration. Travellers may be held
:08:22. > :08:30.on board and create deadlock. Sweden's Volvo plans to hire 10,000
:08:30. > :08:37.staff in the coming year, most of them in China. That would increase
:08:37. > :08:45.the workforce by 40%. Volvo it aims to sell 25% of its cars in China by
:08:45. > :08:52.2020. The latest in the Twilight series of movies was topping the
:08:52. > :08:56.American box office over the weekend. Breaking Dawna is the
:08:56. > :09:06.fourth of the five movies in the Twilight series. It beat the mark
:09:06. > :09:25.
:09:25. > :09:35.puts into second place. The markets Thanksgiving retail sales jumped to
:09:35. > :09:37.