:00:07. > :00:17.is not known. Those are the latest headlines. We now have World
:00:17. > :00:21.
:00:21. > :00:29.Business Report. This is World Business Report. The headlines:
:00:29. > :00:37.Nerves return ahead of a key Italian bond sale. In Asia the euro
:00:37. > :00:41.hit its lowest in a decade against the Japanese yen. Chaos for Iberia,
:00:41. > :00:51.pilots walk out over plans for a new budget carrier. One-third of
:00:51. > :00:54.
:00:54. > :00:59.flights are grounded. It may be the quite back between
:00:59. > :01:04.Christmas and New Year but it is another big day for Italy and
:01:04. > :01:09.anyone watching the eurozone debt crisis. Italy will auction 8.5
:01:09. > :01:19.billion euros of its long-term debt, including three-year bonds. They
:01:19. > :01:27.have to be financed. On Wednesday, some relief as an auction of short-
:01:27. > :01:33.term debt went well. An average interest rate of 3.25 %. Half the
:01:33. > :01:39.record level it was paying one month ago. The euro has sunk to a
:01:39. > :01:49.ten-year low against the Japanese yen. That is not a good start, is
:01:49. > :01:49.
:01:49. > :01:55.it? Not a good start. There was a better than expected debt auction
:01:55. > :02:04.in Italy on Thursday, but the euro has hit its lowest level in ten
:02:04. > :02:14.years against the yen. You have got the low volumes by investors being
:02:14. > :02:18.
:02:18. > :02:28.on holiday. That is amplifying a lot of the news in the market.
:02:28. > :02:38.Yields on Italy's ten-year bonds went up to 7%. That is as Portugal
:02:38. > :02:38.
:02:38. > :02:48.and Ireland look for international assistance. There isn't -- a
:02:48. > :02:53.
:02:53. > :02:59.opinion that long-term debt is harder to sell right now. Banks may
:02:59. > :03:06.be hoarding cash and they're worried about lending to each other.
:03:06. > :03:11.Let's get further analysis on this. In terms of how the sale goes today,
:03:11. > :03:17.these European banks got hold of some liquidity from the European
:03:17. > :03:21.Central Bank, will that help? weeks ago the European banks
:03:21. > :03:25.borrowed 500 billion euros from the European Central Bank. Part of that
:03:25. > :03:35.money will go towards repaying there are in debt. Part of that
:03:35. > :03:39.
:03:39. > :03:49.money will go into European sovereign debt. -- their own debt.
:03:49. > :03:50.
:03:50. > :03:54.Italian bonds at 7% is a very attractive trade. The money is
:03:55. > :04:00.there. As a result, I would be surprised if this option today,
:04:00. > :04:06.which is very important, I would be surprised if it is a complete
:04:06. > :04:13.failure. Today is very important. But it is not the end of the story
:04:13. > :04:21.by any means. By the end of April it needs to raise 90 billion euros.
:04:21. > :04:27.For the rest of this year, it is a phenomenal amount. Italy has debt
:04:27. > :04:33.of 1.9 trillion euros. In 2012 it will have to refinance 340 billion
:04:33. > :04:38.euros. The key question is, has the eurozone crisis been resolved?
:04:38. > :04:45.There is still a lot of work to be done. The banks need a
:04:45. > :04:50.recapitalisation. The support mechanism has inadequate money. If
:04:50. > :04:58.we look at French, Spanish and Italian debt, the totality is in
:04:58. > :05:03.excess of four trillion euros. One thing that worries us going into
:05:03. > :05:09.March and April his political risk in France. You might see the
:05:09. > :05:15.tension shift away from Spain and Italy towards France ahead of the
:05:15. > :05:21.presidential election. We will be watching with great interest. Let's
:05:21. > :05:28.move on. Winter holiday plans across Europe could be disrupted
:05:28. > :05:33.today as pilots from Iberia hold a one day strike. They want to stop
:05:33. > :05:41.managers from hiring pilots from a budget subsidiary at lower rates of
:05:42. > :05:50.pay. It flies millions of not Europeans to the Spanish sun, but
:05:51. > :05:59.it is being eroded by a Easyjet and Ryanair. Iberia plans a no service
:05:59. > :06:09.of its own, Iberia Express. Pay for pilots will be lower. Pilots will
:06:09. > :06:14.
:06:14. > :06:19.be holding strikes over the Christmas period. The management is
:06:19. > :06:26.trying to move to pilots who are not unionised or have collective
:06:26. > :06:32.labour agreements. They have substantially less beneficial terms
:06:32. > :06:42.of condition. British Airways started this in 2008 when it
:06:42. > :06:49.
:06:49. > :06:56.established a French subsidiary. Lufthansa or -- is also employing
:06:56. > :07:02.pilates at lower pay. Iberia pilots are the first to take action. The
:07:02. > :07:11.airline wants to have future strikes banned. The unions are
:07:11. > :07:16.acting unlawfully. The unions want success to chalk up some success in
:07:16. > :07:21.protecting the interests of their members. The Iberia strike is seen
:07:21. > :07:31.as important opening skirmish in what is seen to be an industry-wide
:07:31. > :07:32.
:07:32. > :07:37.dispute between airlines and pilots. The end of the Celtic Tiger economy
:07:37. > :07:43.in Ireland has led to another wave of Irish emigration. 40,000 people
:07:43. > :07:51.left last year and with the unemployment rate 15%, a similar
:07:51. > :07:54.number will leave next year. We report from one of the worst-
:07:54. > :07:59.affected areas. Ireland is recovering from an economic storm.
:07:59. > :08:07.Not quickly enough. A new immigration generation has taken
:08:07. > :08:11.flight. One of the Catholic cathedrals has put its services
:08:11. > :08:18.online so that those living in Australia and America can watch
:08:18. > :08:24.what is happening back home. Sunday Mass, even funerals, can be seen
:08:24. > :08:27.live on the internet by people from County Galway living abroad.
:08:27. > :08:34.would like to think that in some ways they feel connected with their
:08:34. > :08:42.home place. It is ingrained in the Irish psyche. Gaelic football is
:08:42. > :08:51.engraved in the Irish psyche. They have lost 25 players to emigration.
:08:51. > :08:57.Including four of their successful use -- youth team. Shane Heggarty
:08:57. > :09:04.is back from Australia. Just to see his family at Christmas. Will he
:09:04. > :09:14.ever come back for a good? I would like to come back some day. Five-
:09:14. > :09:18.
:09:18. > :09:22.ten years. The west of Ireland is being hit hard by the mass exodus.
:09:22. > :09:27.Emigration is a tradition in Ireland, even during the good times
:09:27. > :09:31.of the Celtic Tiger economy, thousands were leaving every year
:09:32. > :09:41.out of choice. What is happening at the moment is very different.
:09:42. > :09:45.
:09:45. > :09:54.Unemployment is almost 50%. For the 2,000 people emigrated last year,
:09:54. > :10:03.who will be next? -- 42,000. When you have no money you start getting
:10:03. > :10:08.depressed. Community events are keeping spirits up. You can forget
:10:08. > :10:13.about budgets and the euro crisis. These are the people in Ireland who