13/01/2012

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:00:05. > :00:15.She is Europe and's most popular monarch.

:00:15. > :00:15.

:00:15. > :00:22.Time for financial news with World Business Report. Welcome to World

:00:22. > :00:30.Business Report. Borrowing costs plunge for Spain and Italy ahead of

:00:30. > :00:35.-- the head of the ECB says policies are paying off.

:00:35. > :00:45.Strone debt is that in market sentiment in a share.

:00:45. > :00:47.

:00:48. > :00:52.The first of the US banks after a growing quota.

:00:52. > :00:57.The President of the European Central Bank might be forgiven for

:00:57. > :01:03.feeling relieved and pleased with himself. Spain was able to sell

:01:03. > :01:09.almost 10 billion euros of bonds. Italy sold 12 billion euros of

:01:09. > :01:19.short-term debt at an interest rate of 2.7%. That is less than half of

:01:19. > :01:20.

:01:20. > :01:30.the six % it had to pay in December. That is part of the ECB's plan to

:01:30. > :01:30.

:01:30. > :01:36.pump money into banks. The policy measures are providing a

:01:36. > :01:41.substantial contribution to the banks. There by supporting

:01:41. > :01:51.financial conditions and confidence. How is it going down in the Asian

:01:51. > :01:55.

:01:55. > :02:02.markets? Very closely watched isn't it? Asian markets are reacting

:02:02. > :02:08.positively to the news out of Europe. Japan's rows over 1% at

:02:08. > :02:12.this at our. It is raised by shares of exporters. Investors are much

:02:12. > :02:22.nervous over the debt crisis and potential impact on demand for

:02:22. > :02:27.

:02:28. > :02:33.goods made in Asia. EU wrote his steady, holding. $1.28 it is

:02:33. > :02:43.stabilising at 98. Four to five. Oil prices are hovering above $99

:02:43. > :02:44.

:02:44. > :02:53.and -- a barrel. That has pushed up commodities. Monitoring shares in

:02:53. > :02:59.Taiwan ahead of the presidential election which will determine its

:03:00. > :03:07.relations with China. Something of a bigger test as Italy sells off

:03:07. > :03:15.more than 4 billion euros of long- term bonds. While there is no long-

:03:15. > :03:19.term solution to the eurozone crisis. Do you think this is a

:03:19. > :03:27.turning point in the eurozone crisis? Can we be confident that

:03:27. > :03:33.the markets will be there this? With a change of leadership at the

:03:33. > :03:36.ECB we are entering a phase where we will act much closer to what we

:03:36. > :03:42.have been doing. If interest rates have come down and the measures

:03:42. > :03:48.have been put in place. That will help the market. In terms of

:03:49. > :03:54.sentiment, what is also happening is so much bad news into the market.

:03:54. > :04:01.I think the market is giving the benefit of the doubt. We should not

:04:01. > :04:11.get complacent. We should be careful, there will be volatility.

:04:11. > :04:11.

:04:11. > :04:18.We want to make sure we have a well-balanced portfolio. There is

:04:18. > :04:25.still a long way to go isn't there? Him refinancing terms, Italy has to

:04:25. > :04:31.raise $90 billion by the end of April. It is meaningful, because

:04:31. > :04:37.from a sentiment stand. It is a big shift. But financing in 2012 is

:04:37. > :04:41.very large. -- we will need close to racially dollars for the will

:04:41. > :04:46.put together. In terms of Europe, there is a concentration in the

:04:46. > :04:54.first quarter. We have had some good news, but let's be vigilant

:04:54. > :05:03.because there is more to come. I am watching how progress is made in

:05:03. > :05:07.terms of budgets and developments in order to meet the targets. Also

:05:07. > :05:12.understanding of what leaders are thinking of in terms of growth. The

:05:12. > :05:21.test levels are still high, debt levels with no growth are a

:05:22. > :05:27.difficult to sustain. If we saw in Greece, Italy and Spain, widespread

:05:27. > :05:31.market reform, is very potential to unleash strong economic growth?

:05:31. > :05:35.Could be end up with a positive story in five or ten years' time?

:05:35. > :05:41.In five or ten years' time yes. The key thing is to understand the

:05:41. > :05:51.steps. If we have sharp reforms, we have shut unemployment and cost

:05:51. > :05:52.

:05:52. > :06:01.adjustments. Adjustments need to happen in Europe because the

:06:01. > :06:11.currency by so strong. There is still a lot to do. That would be a

:06:11. > :06:12.

:06:12. > :06:16.good step in the right direction. Thank you. It has been a grim

:06:16. > :06:22.quarter for Wall Street's financial giants. They said to date we would

:06:22. > :06:30.get an idea of how about. The largest bank in the US will report

:06:30. > :06:36.a drop in profit of around 17%. Rivals will follow what their

:06:36. > :06:45.results next week. Some are predicting the worst figures in a

:06:45. > :06:52.decade. Our correspondent has more. JP Morgan Chase is America's

:06:52. > :06:56.biggest bank in power. The industry is waiting to see if the money it

:06:56. > :07:02.makes from lending to business has gone up in what was otherwise

:07:02. > :07:06.considered an ugly environment for banks. What we will be looking for

:07:06. > :07:10.it is there that they can produce growth. And also whether they can

:07:10. > :07:15.bring expenses down and how well their investor -- investment

:07:15. > :07:20.banking and Revenue has weathered the crisis. Another challenge is

:07:20. > :07:25.closer to home. New rules have gone into effect that limit the fees on

:07:25. > :07:33.debit card transactions. To make up for lost revenue, banks are

:07:33. > :07:38.tightening their belts. You can jump a lot about the health of the

:07:38. > :07:43.Bank industry, by how well its staff are doing. Spare a thought

:07:43. > :07:52.for the staff, since the recession many have lost their jobs. More

:07:52. > :07:55.lay-offs are expected this year. This meant was that go into in 2009.

:07:55. > :08:01.He has not given up hoping returning to the profession he

:08:01. > :08:05.laughs. With the industry shrinking, it is a challenge. Things are

:08:05. > :08:15.changing quickly, I have to educate myself as much as possible.

:08:15. > :08:22.Resources a very costly. That is a challenge. America's top banks are

:08:22. > :08:30.expected to have had a miserable finish to 2011. The European debt

:08:30. > :08:34.crisis is to blame for dealing profits. A look at what else is

:08:34. > :08:39.happening in the business world. Talks continue in Athens between

:08:39. > :08:47.Greece and private creditors. Greece needs to get private lenders

:08:47. > :08:54.to agree on a 50 % debt write-off. The finance minister said he was

:08:54. > :08:59.confident after meeting on Thursday. It has been warned that key issues

:08:59. > :09:02.remain unresolved and that time is running out.

:09:02. > :09:08.Nigeria's led the unions will hold more talks with the President

:09:08. > :09:13.tomorrow to resolve a dispute over soaring fuel prices. The price of

:09:13. > :09:20.petrol has doubled since subsidies were removed. Correct it --

:09:20. > :09:25.protests were sparked up and down the country.

:09:25. > :09:31.For Apple says it is suspending sales of the iPod fought in Beijing

:09:31. > :09:35.and Shanghai to ensure the safety of customers and employees. Violent