:00:03. > :00:13.multinational business. 6 central banks take action and the market's
:00:13. > :00:19.
:00:19. > :00:24.rally. This is World Business Report. The headlines: President
:00:24. > :00:31.Sarkozy presents his proposals to solve the eurozone crisis including
:00:31. > :00:35.controversial plans to give more power to Brussels. In Asia a global
:00:35. > :00:42.market rally continues after Central Bank intervention and a
:00:42. > :00:48.surprise move by China. Plus, hoping for the best but prepared
:00:48. > :00:58.for the worst. Eight top businessman gives us his art look
:00:58. > :00:58.
:00:58. > :01:03.on the crisis. The markets have been surging around the world after
:01:03. > :01:09.co-ordinated action by central banks led by the US Federal Reserve
:01:10. > :01:13.to East the credit crunch. The Dow had its best day in almost three
:01:13. > :01:18.years on the move to make it easier for European banks to borrow
:01:18. > :01:24.dollars. This may have helped the symptoms of the eurozone crisis but
:01:24. > :01:28.it does not touch the cause. President Sarkozy will outline his
:01:28. > :01:35.proposals for changes to the rules of the EU today, yd expected to
:01:35. > :01:45.give more power to Brussels. More in a moment. First of all, we will
:01:45. > :01:47.
:01:47. > :01:55.look at things in Asia. Strong gains for the share markets. Yes,
:01:55. > :02:02.most Asian forces are more than 2%. The immediate market fears appear
:02:02. > :02:06.to be easing overnight. The Central Bank intervention has eased fears
:02:06. > :02:13.of another credit crunch. There was a surprise move by the central
:02:13. > :02:19.banking China. After more than a year of tightening monetary policy,
:02:19. > :02:24.it looks like it is taking a U-turn in terms of cutting the amount of
:02:24. > :02:30.money it requires commercial lenders to hold. Essentially it is
:02:30. > :02:40.a green light to start lending again. The Hang Seng is the best
:02:40. > :02:47.performer in Asia. Some specific news out today. The Chinese with
:02:47. > :02:55.poor news about manufacturing, but that did not bring down the market.
:02:55. > :03:02.This was the official purchasing managers' index, a snapshot of the
:03:02. > :03:08.manufacturing sector in China. It was a reading of 49, the first
:03:08. > :03:13.shrinkage in three years. It is not good news, but economists say that
:03:13. > :03:18.it shows inflation in the manufacturing centre is easing.
:03:18. > :03:25.They think that means the Central Bank will continue to ease monetary
:03:25. > :03:33.policy further. Thank you Paul Stout the market rally continuing
:03:33. > :03:43.which started in Europe and the US. First of all, your reaction to this
:03:43. > :03:45.
:03:45. > :03:50.rally on the markets. Obviously a good situation. It is good that the
:03:50. > :03:55.central bankers are acting in a co- ordinated manner. They are working
:03:55. > :04:00.together to alleviate the problems of dollar funding. We know that
:04:00. > :04:06.banks are having problems borrowing dollars, so that is important.
:04:06. > :04:11.Having said that, there is only so much they can do. They announced
:04:11. > :04:17.another move a couple of months ago and that did not have much effect.
:04:17. > :04:22.I will give you one statistic. The European Central Bank publishes
:04:22. > :04:29.daily figures about how much money banks give to the CBI overnight.
:04:29. > :04:35.Normally banks lend to each other, not giving it to the ECB. But there
:04:35. > :04:42.is so much fear out there that banks are not lending to the ECB.
:04:42. > :04:46.Overnight at the European banking system lent 300 billion euros to
:04:46. > :04:51.the European Central Bank because they are so scared to lend it to
:04:52. > :05:00.each other. That indicates some of the problems in the credit market.
:05:00. > :05:07.Yes, it is good, but it is not easing the crunching credit markets.
:05:07. > :05:15.We are looking forward to December 9th, the next EU summit. I know we
:05:15. > :05:18.have said many times that this or that is really the crunch point.
:05:18. > :05:25.But, Nicolas Sarkozy today was laying the foundations in terms of
:05:25. > :05:30.addressing the French people and starting to put out the idea of
:05:30. > :05:35.Brussels having more control. France has a AAA credit rating at
:05:35. > :05:41.the moment. France and Germany are the two countries with the AAA
:05:41. > :05:47.rating. That is regarded as under threat. He has elections next here
:05:47. > :05:50.and his economy is slowing down. He is in a difficult position. The
:05:50. > :05:57.French probably understand their needs to be greater fiscal and
:05:57. > :06:02.political union. But they do not think it needs to apply to them.
:06:02. > :06:09.Ali the irresponsible, smaller countries need to give up their
:06:09. > :06:15.control to Brussels. I think that will be a difficult sale. When we
:06:15. > :06:21.talk about treaty change, it will take years. This giving up of
:06:21. > :06:26.sovereignty is happening already. We got some documentation about the
:06:27. > :06:31.bail out front early this week. That showed clearly that if you
:06:31. > :06:36.want the European authorities to help you will be giving up
:06:36. > :06:41.sovereignty. It was there in black- and-white. You will be told what to
:06:41. > :06:46.do with taxation and spending by Brussels, and if you do not make
:06:46. > :06:49.good on your promises the help from the bail-out fund will stop.
:06:49. > :06:57.National sovereignty is a already being given up by European
:06:57. > :07:02.countries were stuck thank you for coming in. We will watch the speech
:07:02. > :07:12.from President Sarkozy very closely later today. If we look at the
:07:12. > :07:12.
:07:12. > :07:22.fall-out from Europe's crisis, Benetton says it is hoping to
:07:22. > :07:23.
:07:23. > :07:31.expand it into markets like Russia. I think we are very worried about
:07:31. > :07:36.that. Very worried as the Italians, but we should also be as Europeans.
:07:36. > :07:46.The global world is going in a direction where if you do not have
:07:46. > :07:46.
:07:46. > :07:52.a critical mass. And as an Italian I am part of a larger group. 90% is
:07:52. > :07:58.made of larger firms. If we do not find a way of making critical mass
:07:58. > :08:03.in Italy and in Europe I think we are in trouble. You have had a
:08:03. > :08:13.change of leadership in Italy recently: Mario Monti, the
:08:13. > :08:23.technocratic leader. In his early there is a bad habit of confusing
:08:23. > :08:25.
:08:25. > :08:31.roles. -- in Italy. An entrepreneur needs to be an entrepreneur. What
:08:31. > :08:35.has happened is that we have been living about our and ability from a
:08:35. > :08:41.financial point of view for too long. Now the financial markets are
:08:41. > :08:46.asking us to pay the price for that. Mario Monti is a good choice, in
:08:46. > :08:55.the right direction. Hopefully he will take us to the stage of
:08:55. > :09:01.getting out of trouble. In reality, Italy needs a European project. So
:09:01. > :09:10.does Germany. What will put the eurozone debt crisis right? We do
:09:10. > :09:15.not know that. There is a big question mark. That worries me a
:09:16. > :09:24.lot. I do not think any single state can make it by itself.
:09:24. > :09:29.Meanwhile, as an entrepreneur Anita BeOS do you I needed to be
:09:29. > :09:39.optimistic, so I am looking for different markets. What about the
:09:39. > :09:45.eurozone breaking up? Like any other major company, we have a