:00:05. > :00:15.Greece is still in the headlines. In Kent Nokia it make a comeback in
:00:15. > :00:17.
:00:17. > :00:22.the smart phone war? -- and can. The welcome to World Business
:00:22. > :00:27.report. The headlines: deadlocked and running out of time. Greece and
:00:27. > :00:34.its creditors return to the negotiating table to try and avoid
:00:34. > :00:39.a looming default. Here at the World Economic Forum in Davos the
:00:39. > :00:45.focus is still on the eurozone crisis as the German Chancellor
:00:45. > :00:55.keeps the pressure on budget cuts and the UK Prime Minister is set to
:00:55. > :00:55.
:00:55. > :01:03.call for more competitiveness. Nintendo is facing tough times as
:01:03. > :01:07.it loses market share to other gadgets. Plus the declining
:01:08. > :01:17.fortunes of not here. Another fall in earnings as it struggles in the
:01:18. > :01:20.
:01:20. > :01:27.brave new world of the smart phone. -- Nokia. As ever, the devil is in
:01:27. > :01:32.the detail and time is running out for Greece s talks on a debt swap
:01:32. > :01:39.resumed. Greece is trying to get creditors to swap government bonds
:01:39. > :01:44.for new ones with half their face value, then by slicing Behan's off
:01:44. > :01:54.the Greek debt. But agreement has stalled over interest rates on the
:01:54. > :01:55.
:01:55. > :02:04.new bond. -- billions. Let's talk about these discussions that have
:02:04. > :02:10.been going on for days. Is it just about that interest rate? No, it is
:02:10. > :02:15.not just about the interest rate. There is much more going on. That
:02:15. > :02:21.relates to the European Central Bank's role. The big question is,
:02:21. > :02:28.can the European Central Bank itself face reducing the debt stock
:02:28. > :02:33.on its holdings and take a haircut. It has not been clear whether the
:02:33. > :02:40.ECB will do that. Yesterday Christine Lagarde said very
:02:40. > :02:46.strongly that that should be what the ECB should do, yet we had
:02:46. > :02:49.German leader saying the ECB should not take a haircut. This is
:02:49. > :02:55.fascinating because this debate has been going on in private for a
:02:55. > :03:03.while. This is the first time it has come out in public. In my
:03:03. > :03:08.opinion the ECB must be the one to play. There are use of history
:03:08. > :03:14.between dozens of countries and the rule is that the public and private
:03:14. > :03:20.sectors take the same reductions in debt stock. The ECB should do the
:03:20. > :03:30.same. Where do you believe things should go? Greece must make this
:03:30. > :03:31.
:03:31. > :03:37.huge payment by 20th March. This is just the first step. That date is
:03:37. > :03:44.one of the most important economic periods in history. We may not get
:03:44. > :03:48.an agreement. The Greek government will force some pressures to join
:03:49. > :03:54.in on the debt reduction. Then you will get some sort of deal, maybe
:03:54. > :04:02.in time, may be a default. Then there is the other big issue, what
:04:02. > :04:07.happens to Greek banks. Will they be sufficiently capitalised?
:04:07. > :04:12.situation remains critical indeed. We will keep you across any
:04:12. > :04:22.developments from Athens. The eurozone is dominating proceedings
:04:22. > :04:28.
:04:28. > :04:33.in Davos. It seems that the opening tone for this conference in Davos,
:04:33. > :04:39.this World Economic Forum, is negative. Confidence has not yet
:04:39. > :04:44.arrived. We can hoped that it may do so in the next few days as some
:04:44. > :04:54.ideas may emerge about how Grothe can be promoted or will it the use
:04:54. > :05:02.
:05:02. > :05:10.of stagnation. Martin is here to muddle through this with us. Mardon,
:05:10. > :05:18.are you feeling gloomy about economic prospects? Actually, we
:05:18. > :05:23.have had meetings and I find that business people have the view we
:05:23. > :05:28.will muddle through. They believe it will be difficult and messy.
:05:28. > :05:32.Part of the problem is if the creek before came it would be
:05:32. > :05:42.unpredictable. We need a fireball around Italy, which people are
:05:42. > :05:44.
:05:44. > :05:49.trying to build. -- firewall. If Creek -- Greece defaults and
:05:49. > :05:58.contagion spreads to Italy, it will be a problem for French banks. But
:05:58. > :06:04.people do not see a real default. Angela Merkel says Germany paid too
:06:04. > :06:10.high a price for East Germany. But I don't think so. The Germans are
:06:10. > :06:18.also paying to bail-out the rest of Europe, so they are exacting the
:06:18. > :06:26.hard bargain. They want fist full integration. She is negotiating. --
:06:26. > :06:32.fiscal. The biggest issue will not be in Europe. This time next year
:06:32. > :06:38.we will be worrying about America. Some people don't agree, but some
:06:38. > :06:43.Americans believe the US deficit is the real elephant in the room and
:06:43. > :06:50.after the election, when Barack Obama will probably be re-elected,
:06:50. > :06:56.he will have to do with that. will be a lot of talk about
:06:56. > :07:03.structural change this week. David Cameron, the UK Prime Minister, is
:07:03. > :07:10.about to talk today about compared deafness within Europe. Kent the
:07:10. > :07:20.structural changes promote growth fast enough to pay off the debt? --
:07:20. > :07:28.
:07:28. > :07:36.candies. -- can these. Nokia has been trying to catch up with market
:07:36. > :07:43.leaders. Up until two years ago, Nokia had a 40% share of the global
:07:43. > :07:50.market of mobile phones and 80% of the profits. Then Apple and Samsung
:07:50. > :07:54.lodged hugely popular smart phones. Nokia has found it hard to catch up.
:07:54. > :08:03.Lastly it abandoned its own smart phone software and brought in
:08:03. > :08:07.Microsoft technology. Now it has problems selling its stock. The
:08:07. > :08:13.sales of its all products and declining much more quickly than
:08:13. > :08:19.its new products are increasing. Their financial results will show
:08:19. > :08:25.of a big gap between those things. Nokia is two different businesses.
:08:25. > :08:31.The first one is smart phones based on the Windows platform. The second
:08:31. > :08:38.one is based on more rudimentary phones based on its own technology.
:08:38. > :08:43.But Nokia sells 400 million of this type of phone worldwide every year.
:08:43. > :08:47.This makes it by volume and the world's biggest manufacturer of
:08:47. > :08:55.mobile phones. Nokia is very popular in countries like India,
:08:55. > :09:02.but even here that is threatened. That loyalty will be pressured when
:09:03. > :09:08.we get low cost smart phones coming into China and India. Nokia fears
:09:08. > :09:16.that there will be a difficult time ahead. Investors are losing
:09:16. > :09:20.confidence in Nokia. Last year its share price slumped by 50%. It has
:09:20. > :09:25.begun to sacking 10,000 staff. There are questions about whether
:09:25. > :09:28.or not yet can survive in its current form and talk of with
:09:28. > :09:38.splitting up altogether with its smart phone division merging with
:09:38. > :09:38.
:09:38. > :09:46.another technology giant. Now all about Nintendo. Tell us about
:09:46. > :09:50.Nintendo. We are waiting for its result. That is right. They are
:09:50. > :09:58.forecasting gloomy quarterly earnings. The Japanese company is
:09:58. > :10:03.expecting a 50% slide in profit. It had to reduce its prices to improve
:10:03. > :10:09.sales. It has been hit by weaker global demand and a strong Japanese
:10:09. > :10:15.currency. Late last year it announced it would report its first
:10:15. > :10:21.ever annual loss later this year. For many use it dominated the
:10:21. > :10:26.industry. But it is now struggling to keep up with more versatile
:10:26. > :10:36.gadgets like apple smart phones and tablets. The markets are doing well,
:10:36. > :10:41.though. Yes, doing quite well today thanks to the news from the Federal
:10:41. > :10:45.reserve about keeping interest rates low. But that is being
:10:45. > :10:52.contained by lingering concerns that Greece will default on its
:10:52. > :11:00.debt. Hong Kong is higher. South Korea is supported by hi-tech
:11:00. > :11:05.prices. The dollar is weaker against Asian currencies after the
:11:05. > :11:12.Federal reserve statement. We appreciate your input to the
:11:12. > :11:17.program. Before we go, eyeball mentioned that the big story is the
:11:17. > :11:23.focus on Greece and Athens with discussions about debt. Currencies
:11:23. > :11:28.are on the move. The dollar is doing rather well. The euro is
:11:28. > :11:35.remaining jittery. That news from Ben Bernanke saying they will keep