:00:04. > :00:14.Japanese prosecutors raided the headquarters of Olympus and the
:00:14. > :00:19.
:00:19. > :00:22.It is decision day in a dispute that is provoking transatlantic
:00:22. > :00:32.tensions. Brussels wants all airlines in Europe to pay for their
:00:32. > :00:32.
:00:32. > :00:36.carbon emissions. Europe's highest court is to deliberate in the next
:00:36. > :00:41.few hours. Airlines responsible for 3% of the
:00:41. > :00:45.carbon put in the atmosphere. -- are responsible. This is the first
:00:45. > :00:49.government body to take action to try to reduce this. From 2012, in
:00:49. > :00:57.the airline taking off or landing in the US base will have to buy
:00:57. > :01:00.Credit to compensate for the carbon. -- US airspace.
:01:00. > :01:05.The EU look hard for the carbon omitted throughout the whole of the
:01:05. > :01:09.journey, not just in European airspace.
:01:09. > :01:14.The consortium of US airlines has argued to the European Court of
:01:14. > :01:22.Justice that this is a breach of US territorial sovereignty. But they
:01:22. > :01:26.are backed by powerful politicians. A lot of the Europeans want to do
:01:26. > :01:32.it in their ace -- their airspace and that is their business and we
:01:32. > :01:36.should comply with that. But outside, it violates some other
:01:36. > :01:42.basic international agreements. the court rules in favour of the
:01:42. > :01:47.scheme, the US has another weapon. A bid that is going through
:01:47. > :01:54.Congress that would ban US airlines from participating in the European
:01:54. > :01:59.Skene. East Asian countries are joining in opposing this. The fact
:01:59. > :02:02.that a number of countries are opposing this scheme could mean
:02:02. > :02:10.some sanctions or threats of not allowing EU airlines to fly in
:02:10. > :02:15.their territory. This dispute could conceivably reach the stage where
:02:15. > :02:21.states stop European airlines from flying into their airspace or stop
:02:21. > :02:26.their airlines from flying into Europe. This would be a very
:02:26. > :02:30.expensive move all round. So expect some of intense negotiations at the
:02:30. > :02:34.beginning of 2012 as States and airlines negotiate with the
:02:34. > :02:44.European Union to water down the Skene.
:02:44. > :02:49.
:02:49. > :02:53.-- scheme. The new Italian Prime Minister has been sworn in.
:02:53. > :02:59.But he may have a less benign welcome from the public as he wants
:02:59. > :03:07.to slash the country's deficit by 16,500 euros. That is just the
:03:07. > :03:12.start. Can he get his austerity measures through? We are joined by
:03:12. > :03:19.a professor at the School of Economics in the bar. Thank you for
:03:19. > :03:29.talking to us. From what you have heard of these reforms, what you
:03:29. > :03:29.
:03:29. > :03:39.make of them so far? They are going in the right direction in that they
:03:39. > :03:40.
:03:40. > :03:48.have pointed out the main issues that Spain has to tackle. And the
:03:48. > :03:54.two main issues - the labour market reform and restructuring the
:03:54. > :03:58.financial sector. So it is clear up their attitude is correct. Now, how
:03:58. > :04:05.will that the cows come about? That will be key. And the markets seem
:04:05. > :04:13.to be giving him a thumbs-up. how will that come about. Will it
:04:13. > :04:18.be difficult for him to get support from the public? It is clear that
:04:18. > :04:24.the government has absolute majority. That is one advantage
:04:24. > :04:34.this government has. On the other hand, the public has given strong
:04:34. > :04:35.
:04:35. > :04:44.mandate to this government. They want them to do what they have to
:04:44. > :04:53.do. It may cause them trouble but I do not believe the public will
:04:53. > :04:56.support such bold measures. Thank you. Apologies as we are short on
:04:56. > :05:01.time. Investigators in Tokyo have raided
:05:01. > :05:08.the headquarters of the camera company Olympus. Rico Hizon is
:05:08. > :05:13.covering the story. Dramatic events today.
:05:13. > :05:18.Absolutely. No let up in probing one of Japan's biggest corporate
:05:18. > :05:28.scandals. Japanese prosecutors are raiding the Olympus Maine Office,
:05:28. > :05:28.
:05:28. > :05:38.its subsidiaries and the homes of executives. The residents of one of
:05:38. > :05:39.
:05:39. > :05:46.the former President's -- presidents was searched today. We
:05:46. > :05:50.still do not know what they found all what they took from the
:05:51. > :06:00.premises. They are investigating the firm which has admitted to
:06:00. > :06:05.hiding huge investment losses by questionable deals over the past 20
:06:05. > :06:10.years. The whistle-blower on the scandal was fired in October. He is
:06:10. > :06:13.trying to get his job back but faces a long battle to get his
:06:13. > :06:20.current position with the management team. Olympus shares
:06:20. > :06:28.were down in Tokyo by 1.5% at the big day trading break. There were
:06:28. > :06:35.as a 16% surge the day before. Grim figures coming out about the
:06:35. > :06:41.Japanese economy today? Absolutely. We have the eurozone
:06:41. > :06:47.debt crisis, the floods in Thailand, the slowing down emerging economies,
:06:47. > :06:55.they are blamed for the poor Japanese export data in the months
:06:55. > :07:00.of November. Outbound shipments fell 4.5%. That was due to weak
:07:00. > :07:05.demand for digital cameras. Amid this green backdrop, the Bank of
:07:05. > :07:12.Japan kept interest rates unchanged and offered a bleaker view on the
:07:12. > :07:22.economy. This is due to the mounting evidence of paint
:07:22. > :07:24.
:07:24. > :07:29.inflicted by Europe's debt crisis. It is thought there will be a big
:07:29. > :07:35.uptake from eurozone banks when the European Central Bank offers a --
:07:35. > :07:39.three-year loans at cheap rates later today. Estimates range from
:07:39. > :07:44.150 billion euros to 600 billion euros. The ECB is trying to ensure
:07:44. > :07:50.banks have access to cash so they can keep lending to companies and
:07:50. > :07:56.households. The sportswear maker Nike saw its
:07:56. > :08:01.second quarter helped by strong demand for its branded products. It
:08:01. > :08:07.earned $469 million, up from $459 million for the same quarter one
:08:07. > :08:13.year ago. Business was especially brisk in developing markets and
:08:13. > :08:19.particularly in China. Looking at the market. You will
:08:19. > :08:20.remember on Monday how far the South Korean market fell on the
:08:21. > :08:24.South Korean market fell on the news of the death of Kim Jong Il.
:08:24. > :08:30.It then recovered a little bit on Tuesday. In fact, it is moving
:08:30. > :08:38.quite nicely ahead now. Just under 3%. It has more than recovered from
:08:38. > :08:45.those drops. The Nikkei is up by 1% at this stage. A lot of that has
:08:45. > :08:53.been driven by events in the US. We saw a big rise from the Dow Jones
:08:53. > :08:58.on Tuesday, up by nearly 3%. That was the best trading day in the
:08:58. > :09:03.month so far. Helped by some very strong housing data. And the news
:09:03. > :09:06.that Spain's debt auction was better than people expected. This
:09:06. > :09:11.is where the European markets will be starting their trading session