:00:05. > :00:15.gave no further details. Those are the latest headlines. We now have
:00:15. > :00:16.
:00:16. > :00:22.the latest financial news. This is World Businerld Busine The
:00:22. > :00:28.headlines: The British economy is slowing down, we find out how fast
:00:28. > :00:38.and what the government plans to do about it. Citigroup Dolder pilates
:00:38. > :00:40.
:00:40. > :00:50.dealings during the mortgage broom. -- dogged by its dealings. The
:00:50. > :00:55.unemployment rate surges to 4.9% in Japan in October. Good to have you
:00:55. > :01:01.with us. The UK may not be part of the eurozone but it is not escaping
:01:01. > :01:06.the general downturn. The Office for Budget Responsibility will
:01:06. > :01:16.downgrade the growth forecast for next year down to 1%. The British
:01:16. > :01:16.
:01:16. > :02:10.Apology for the loss of subtitles for 53 seconds
:02:10. > :02:14.I hope we do return to some modest GDP growth. One answer says the
:02:14. > :02:18.government is a $46 billion investment programme in roads, rail
:02:18. > :02:24.and energy projects. By boosting spending on these, the whole
:02:24. > :02:29.economy might benefit. As for this CrossRail project, to build a new
:02:29. > :02:32.railway line under London, the government does not have enough
:02:32. > :02:38.money of his eye in. It is hoping to attract money from private
:02:38. > :02:48.sector pension funds and even the Chinese sovereign wealth funds. --
:02:48. > :02:53.
:02:54. > :02:58.money it of its own. The Chinese may invest if the returns are
:02:58. > :03:04.favourable. One company that invested in the M6 toll is losing
:03:04. > :03:13.$40 million a year. Getting the economy back on track and managing
:03:13. > :03:19.the deficit, the government insists there are very few alternative
:03:19. > :03:24.plans. It maybe days, perhaps weeks, many commentators are saying time
:03:24. > :03:28.is short to rescue the euro. There are several potentially significant
:03:28. > :03:32.events today. European finance ministers are meeting in Brussels
:03:32. > :03:36.for a summit. They want the bail- out funds to be tough enough to
:03:36. > :03:44.tackle the debt crisis. There are caused that Europe will have to
:03:45. > :03:48.come up with more radical proposals than that. -- there are calls.
:03:48. > :03:55.Italy plans to auction $10 billion worth of government bonds later
:03:55. > :04:03.today. It will expect to pay extremely high interest rates to
:04:03. > :04:07.attract investors. Let us speak more about this. Yesterday the
:04:07. > :04:11.stock markets in Europe were really strong. There is a sense that
:04:11. > :04:21.European leaders will be acting soon, is that the impression you
:04:21. > :04:26.get? It is too difficult to be confident. What is clear, time is
:04:27. > :04:34.running out. People appreciate there is no room for complacency
:04:34. > :04:42.any more. There is a meeting on denied of December, we are very
:04:42. > :04:48.close to that. -- 9th December. They want to have something
:04:48. > :04:58.hammered out before then. Yes, they really do. But there is opposition
:04:58. > :04:59.
:04:59. > :05:03.in Germany and other countries as well. There is not much evidence to
:05:03. > :05:07.suggest that will wane over the coming weeks. On the other side of
:05:07. > :05:15.the fence, there is opposition in France and other countries to
:05:15. > :05:20.greater scrutiny in their fiscal policies. What do you think will be
:05:20. > :05:26.the outcome? What will they agree on? There is a lot of dissension in
:05:26. > :05:34.the ranks, that is why they have not come up with a plan as yet.
:05:34. > :05:39.What I think might happen, even if they cannot agree the principles of
:05:39. > :05:44.sharing fiscal responsibility, they would set out a plan to have more
:05:44. > :05:49.meetings than they have previously. This could build up to a summit
:05:49. > :05:55.where they hammering out a deal then. In terms of what is going to
:05:55. > :06:00.happen today... The stability fund? The enlargement of that? That is
:06:00. > :06:07.the preferred option for everyone. You would get more private --
:06:07. > :06:14.private investment. That is the preferred options for all countries.
:06:14. > :06:24.But the reality is, there is no time. Thank you for coming in and
:06:24. > :06:27.
:06:27. > :06:33.talking us through the expectations. The markets now. City grip is try
:06:33. > :06:40.to settle legal cases since 2008 and the financial crisis. -- City
:06:40. > :06:45.group. A judge threw out a $285 million settlement offer,
:06:45. > :06:53.suggesting it was just pocket change. Citigroup where accused of
:06:53. > :07:01.selling investors complex financial products and then betting against
:07:01. > :07:10.the outcome. -- were accused. A judge has struck down a deal made
:07:10. > :07:15.between the Bank and the consumers. The judge said he was not sure the
:07:15. > :07:20.deal was fair. He criticised the regulators for shielding the public
:07:21. > :07:25.from the details. He said when it comes to issues of financial
:07:25. > :07:35.transparency, it is in the public interest to know the truth. City
:07:35. > :07:50.
:07:50. > :08:00.grip said the offer was fair and reasonable. -- Citigroup. They sold
:08:00. > :08:00.
:08:00. > :08:04.Securities which they then went to invest against. The Japanese
:08:04. > :08:10.economy has bounced back from the shock of the earthquake in March
:08:10. > :08:16.this year. That bounds could be fading. Data out today shows a
:08:16. > :08:23.sharp rise in unemployment. It is a very familiar tale in Europe, but
:08:23. > :08:29.it sounds like Japan is seeing a similar picture? More Japanese
:08:29. > :08:37.workers are out of jobs. The jobless rate rising for the first
:08:37. > :08:45.time in three months. Jumping to 4.5%. Manufacturers shed the most
:08:45. > :08:54.jobs. 210,000 in October. Among the largest firms reducing the
:08:54. > :09:00.headcount, Panasonic. They alone are -- eliminated 17,000 people.
:09:00. > :09:10.When firms lay off employees, this impacts household spending and
:09:10. > :09:20.incomes. The numbers are falling as families tightened their purse
:09:20. > :09:22.
:09:22. > :09:32.strings. In the face of a strengthening yen and a slowing
:09:32. > :09:34.
:09:35. > :09:44.global economy, there are some positive news as well. Retail sales
:09:45. > :09:47.