05/12/2011 World Business Report

to an attack earlier this month. Those are the latest headlines. We

now have the latest financial news. This is World Business Report. The

headlines: The urgent task of saving the euro, France and Germany

need to prepare their strategy for a make or break summit. A Travel

update from TUI Travel as customers tighten their belts on holiday

spending. One of China's largest chains is preparing for Hong Kong's

largest share sale this year. It is another week and another attempt to

save the euro. Nicolas Sarkozy and Angela Merkel meet to prepare to

prepare their positions ahead of a critical EU summit at the end of

the week. They will jointly propose changes that they hope will

stabilise the euro. The main point will be stricter control over

national budgets. Another idea being discussed is the sea be

lining 200 billion euros to the IMF, getting around the problem it

cannot intervene directly. -- European Central Bank loaning 200

billion euros. Italy is implementing new austerity measures.

Prime Minister Mario Monti says it is part of a scheme to save Italy

and he is forgoing his eye in salary. -- his own salary. Are you

optimistic Angela Merkel and Nicolas Sarkozy will come up with

plans bacon both agree on? -- they can. We hope they are going to come

up with some guidelines that they can follow. We are going to learn

the details. They are going to be negotiated during the summit.

devil is in the detail. I know it is a tricky thing to ask you, but

what do you think the key issues they have to agree on are? They

need to tell us more about this fiscal compact. What is it going to

be about? Is it going to be a fiscal union? That is rather

unlikely. Will it be streamlining the decision process on the budget

with different countries? Is it going to be agreeing on what the

general rules on the deficit are going to be? They need to tell us.

How far are the treaty is going to be modified? -- treaties. Is it

going to be between 17 or 27 European Union members in total?

What is going to be the role of the European Central Bank? Is it going

to be independent? We need to know. If there is a fiscal agreement, we

are going to need credible sanctions for any tight and if any

country tries to breach them. -- any type. What do you make of this

news that the European Central Bank might give money to the IMF and

help the economy is that way? are trying to resolve the issue

through the back door. That is one way to do it. Another way would be

to pump up the European stability fund. That has fallen short. What

the European Central Bank is going to do is try to have lower interest

rates. They will keep on providing liquidity to banks against new

assets that are going to be admitted as collateral. That is one

way of addressing the problem. This is going to be one idea to stave

off the current crisis. It is not a long-term solution. We have to

leave it there. We have run out of time. Thank you for explained the

key issues that will be discussed today. We are looking at TUI Travel,

they are expected to report a small increase in profits. Its fortunes

are in stark contrast to Thomas Cook that had to go cap-in-hand to

the bank. Business in Germany and Scandinavia is going well, UK and

France is looking weak. At this time of the air travel agents are

usually busy taking bookings for winter holidays. Not so now. This

one has seen such a lack of clients that business is down by 40%.

can feel that people are nervous. They do not want to spend money.

For many tour operators, the year started badly as well. Following

the Arab Spring, hotels and beaches were left empty in Tunisia and

Marco. TUI Travel worth -- were quick to use what destinations to

Spain. -- Tunisia and Morocco. TUI Travel is much more financially

nimble as well. The company has far fewer high street stores than

Thomas Cook. That is good news for TUI Travel because more of their

customers book online. TUI Travel is writing a train for all-

inclusive resorts that tend to be more upmarket than Thomas Cook with

higher profit margins. Thomas Cook will report its delayed financial

results next week. With weakening demand across Europe, all tour

operators are likely to find the holiday business a rather UN exotic

business to be in. Let's go to Singapore. Who is this company?

Tell us about it. They hope its massive offering on the Hong Kong

Stock Exchange will produce a greater revenue. It aims to raise

$2.8 billion. It could surpass cry out's $2.5 billion offering. --

Prada's. It will be listed on 15th December. Age has done more than --

has got more than 1,400 outlets in China. Records show sales of luxury

items will double to $28 billion in 2016 compared to last year.

Analysts say the offering could be tricky. Thank you. The Irish Prime

Minister Enda Kenny has warned that the public remains in an economic

crisis. He delivered a televised address one day before his

government will deliver austerity measures. The government was slash