17/01/2012 World Business Report

his native country. Those are the top stories. Now what

Hello. You're with World Business Report. I'm Sally Bundock. The

headlines: Hitting the brakes - China's economy slows down as

Europe and the US hit home with uncertainty.

Standard & Poor's cuts the credit status of the eurozone's bailout

fund. I'm Rico Hizon in Singapore. South

Korea's largest conglomerate set to invest a massive $41 billion in

2012, despite the uncertain global Good to have you with us. More

pressure on the eurozone, the very mechanism designed to provide a

safety net during the debt crisis. The much-wanted bailout fund has

had its credit status downgraded by Standard & Poor's, on top of the

downgrade of the nine eurozone nations by the ratings agency last

week. Where does this leave then? To put it in perspective, Bronwyn

Curtis joins us from HSBC. Given what happened to France and some of

the other eurozone economies, it's not a surprise that they took this

step late yesterday? It's not a surprise at all. In fact, if you

looked at the way the bonds that were issued by the bailout fund

have been behaving over the last few weeks, they've been cheapening,

against German government bonds. It was really anticipated. So the

market impact will be limited. But of course, it's another sort of

nail in the coffin of the euro area. So what happens now? Because

obviously the EFSF is a short-term mechanism - there's another new one

kicking in that's more long-term, and then there's the issue of what

the ECB might do. Do we have to be worried about this lack of

credibility or less credibility of The fund are only issued about 21

billion euros. That is about 10% of what they could issue with the

triple A countries. But they are looking at issuing around 440. They

could not do that. The European stability mechanism kicks in around

media. That would also have its lending to pass the reduced. It

does have a knock on impact. It is not good news. These countries need

money. One of the things it may do his force more or of the euro area

towards common bond issuing. -- force. So-called eurozone bones as

opposed the existing mechanisms. If Italy were to be in less trouble,

it is in a difficult situation, the fact that these funds are not able

to lend as much or borrow as much, that is a problem? It is a problem.

Italy is a massive country. It has been downgraded. That is a massive

issue. Not having enough money. Mario Monti was speaking yesterday

about have Germany has to help. It is a country that usually has the

money to help. But they cannot help everybody. It may force the issue

of greater fiscal integration. That is what we need. We will talk you

further about this when we look at stories and been an international

papers. To time to look at the European

Commission who will announce what they will do with Hungary's

controversial Central Bank reforms. If any part of the new laws are

found to be in breach with the EU policies, they may place

infringement proceedings. The far-right party rallied in

Budapest on the weekend against the European Union. This is a party

which won an only 17% of the vote for the last election. It is the

only party to support has grown. TRANSLATION: Will not give up our

sovereignty or the fruits of her work. Our answer to the European

Commission is that Hungary should withdraw. Many in Hungary feel

their country is being dictated to by Brussels and Washington. Others

say the country has no choice but to do whatever it is told to get

the development funds it needs from the European Union. Hungary is only

a couple of months away from the fault. There is no alternatives.

The Government argues that the national economy is on a firm

footing. Their past record, not their future plans, are the cause

of controversy. That is little consolation for school leavers.

was three years ago. I cannot find anything. I cannot find a job. I

have not got a big dreams. Minster the coldest weather of the

new year, a hungry braces itself for news from Brussels. -- Hungary.

Their critics say they should have passed laws carefully in the first

place. Despite all the economic

uncertainty, South Korea's biggest company has some bold ambitions.

We are talking a lot of money and a lot of jobs to be created. Tell us

more. That is South Korea's top conglomerate, Samsung. It includes

Samsung Electronics. They are bold and aggressive. They are

unperturbed by the uncertain global business outlook. The group will

invest about $41 billion, a rise of 11%, an all-time high of 26,000 new

employees. That is a lot of a job creation. The conglomerate did not

announce how the investment will be divided among its 60 companies.

Analysts believe a massive investment will be made in Samsung

Electronics, particularly in new technologies such as logic chips

and the next organic light-emitting diode flat-screen displays. This

will consolidate its leading position in several areas. A

technology expert said that Samsung is indeed awash with cash compared

to its competitiveness -- competitors and can make a bold

vets in new technologies. -- Boulder Bay its.

A very interesting story coming out of that part of the world. The

other big part of coming out of Asia is the story about Chinese

growth. We cannot link up with it Correspondent in Beijing. This is

out of story in business. The Chinese economy expanded it in

wealth in the last year and in the 4th quarter. But at the slowest

pace in 10 quarters. This is as export demand was moderated and a

prolonged campaign against consumer and property prices is curving rows.

GDP for that particular three months up 8.9%. If you look at the

whole year, it is over 9% last year. The Chinese economy is cooling down.

This raises lots of questions about where it is headed for the rest of

this year. How much impact as the European debt crisis have? Showing

you the markets quickly. The Chinese story boosted share trading.

Economies were predicting the slowing down and would be more

severe. That helped the market. This is a quick look at things