07/12/2011

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:00:04. > :00:14.occasion. Those are the latest headlines from BBC News. We now

:00:14. > :00:22.

:00:22. > :00:26.have the latest financial news. headlines: Looking for the eurozone

:00:26. > :00:36.bazooka, reports that Europe is discussing a way to govern is bail-

:00:36. > :00:41.out fund. The electrical company that had to pay investors to take a

:00:41. > :00:51.company off its hands. A comeback for Australia's economy, will it

:00:51. > :00:52.

:00:52. > :01:00.continue? Much has been made of the importance of this week's eurozone

:01:00. > :01:05.summit. The Financial Times is reporting negotiators are

:01:05. > :01:10.discussing the doubling the firepower of the eurozone bail-out

:01:10. > :01:16.fund by creating two separate systems. It would come in

:01:16. > :01:21.conjunction with the of -- rewriting the EU treaties. Timothy

:01:21. > :01:26.Geithner continues his tour of Europe, he will have meetings with

:01:26. > :01:33.French and Spanish leaders. He has emphasised how important it is for

:01:33. > :01:36.a fast solution to the debt crisis. I am here to emphasise how

:01:36. > :01:46.important it is that Germany and France succeed alongside the other

:01:46. > :01:49.

:01:49. > :01:54.nations in Europe in building a stronger eurozone. Greece have

:01:54. > :01:59.passed next year's austerity budget. It was part of a condition of

:01:59. > :02:04.receiving a second bail-out. The Budget is designed to slash the

:02:04. > :02:14.deficit and restore creditor confidence. After the vote one

:02:14. > :02:23.politician said it was difficult but necessary. We proved tonight

:02:23. > :02:32.that we are responsible enough to face our problems, but we are also

:02:32. > :02:42.proving that the solution is not only a mathematical one. We must

:02:42. > :02:46.

:02:46. > :02:56.preserve our society. We must avoid a solution to become unbearable to

:02:56. > :03:00.

:03:00. > :03:03.society. Nice to have you with us. Everyone is talking about this debt

:03:03. > :03:12.crisis, explained the idea of a three-pronged attack involving the

:03:12. > :03:17.bail-out fund, the IMF possibly involved? This is a discussion on

:03:17. > :03:27.the monetary plan as well as the fiscal plan. The Madrid plan, at

:03:27. > :03:32.the moment we have the European with 540 bilth 540 bil will be

:03:32. > :03:37.replaced in 2013 with the European stability mechanism. That would be

:03:37. > :03:47.500 billion. What they are now ta tat, it may come in next

:03:47. > :03:47.

:03:48. > :03:53.year rather than 2013. At the same time you can look at what other

:03:53. > :04:02.funding there might be the start the IMF and European Central Bank

:04:02. > :04:10.could be involved. -- might be. you feel that could be a credible

:04:10. > :04:14.answer that would lead to an end to the crisis? I think this Friday we

:04:14. > :04:19.have the leaders looking at both

:04:19. > :04:29.proper solution on both elements. Fiscal integration has always been

:04:29. > :04:33.

:04:33. > :04:43.necessary. You have integration of all of disintegration. --

:04:43. > :04:43.

:04:43. > :04:47.integration or disintegration. is being turned the big bazooka. We

:04:47. > :04:52.will see what comes out of this meeting tomorrow. What about the

:04:52. > :05:01.political side? We have heard from the UK Prime Minister highlighting

:05:01. > :05:11.his concerns, that is the issue, isn't it? Her -- politically they

:05:11. > :05:11.

:05:11. > :05:19.have to get this through? Yes, David Cameron has said this should

:05:19. > :05:24.solve the problem and not damage Britain's interest at the same time.

:05:24. > :05:33.If there is some solution that allows Britain an exemption, if it

:05:33. > :05:40.allows London not to be hit by the rules, the question has to be, well

:05:40. > :05:45.that get through the parliament? Although we see something plant

:05:45. > :05:55.that looks like it will work, we have a few months to see if it can

:05:55. > :05:58.

:05:58. > :06:07.get three in each country? -- through in each country. Thank you

:06:07. > :06:16.very much. You can read more on Australia. The economy is proving

:06:16. > :06:26.to be very resilient. We go to Singapore for the details. What is

:06:26. > :06:34.

:06:34. > :06:37.the news to come out of Australia Growth was aowth was ang 2.5%. They

:06:37. > :06:47.are the one that Down Under. It has rebounded confidently from the

:06:47. > :06:50.

:06:50. > :06:54.contraction Wysall between January and March. -- contraction we saw.

:06:54. > :07:02.Invests -- job creation has been strong. Businesses have been

:07:02. > :07:10.investing again. Australia is one of the strongest economies in the

:07:10. > :07:14.developed world. Australia owes much of that growth to Asian

:07:14. > :07:24.countries, particularly China. Australia's Central Bank has

:07:24. > :07:25.

:07:25. > :07:31.borrowing. Very quickly, before you go, tell us about India, they have

:07:31. > :07:35.made a decision about the retail sector? That is right. A widely

:07:35. > :07:45.anticipated decision after two weeks of protests from opposition

:07:45. > :07:55.parties. Companies like Wal-Mart may be able to own 60 -- 51% of

:07:55. > :07:56.

:07:56. > :08:01.stakes in local supermarkets. you. Europe's third largest

:08:01. > :08:10.electrical retailer or will expect to unveil losses of $14 million in

:08:10. > :08:13.around one hour. It will confirm the sale of its UK chain. It is

:08:13. > :08:23.paying a private equity group millions of dollars to take it off

:08:23. > :08:26.

:08:26. > :08:31.its hands. The coffers are as empty as the Isles, this retail chain has

:08:31. > :08:35.lost $34 million. Shoppers that can afford a televisions and other

:08:35. > :08:42.electrical items are migrating to the internet. They are getting rid

:08:42. > :08:47.of a brand that has become nothing but a burden. With times tough on

:08:47. > :08:53.the high street, why on earth would anyone want to buy a business like

:08:53. > :09:01.this? The only answer is that they are paying off another company to

:09:01. > :09:06.take it off their hands. They get a cheque for $78 million, it does not

:09:07. > :09:13.have to take on the pension fund either. For 1.5 years it could

:09:13. > :09:20.close 250 stores. They have only got a guarantee from the buyer that

:09:20. > :09:29.they will keep the stores open for 18 months. That is a very short

:09:29. > :09:34.period. That shows you some of the troubles that they have. They will

:09:34. > :09:37.try and expand in Spain, Italy and Turkey. Unlike the British arm of

:09:37. > :09:43.the business, it is still profitable. But it faces more

:09:43. > :09:49.challenging times. Challenging times, that is the theme at the

:09:49. > :09:52.moment. Let's have a look at the markets in Asia. This is in