13/02/2012 World Business Report

regime in Syria. It is time now for the World

Business Report. The headlines: Protests on the

streets of Athens as Parliament agrees to back the painful

austerity measures. Growth in Japan shrinks more than

expected, the strong yen and floods in Thailand have her at its

manufacturing chains. -- damaged.

Greek politicians have pushed through the much-hated, painful

austerity measures which are demanded in return for a loan to

save them from default. Tens of thousands protested against the

cuts, they were mostly peaceful during the day, later, police fired

tear-gas as protesters threw stones and petrol-bombs. Some buildings

were set on fire. We are joined from Athens. Tell me

something about the atmosphere there. We saw the pictures of the

violence, brought about in the parliament? There are tensions in

Parliament as well. This was a very important vote. There was a big

debate about whether this should be the way forward for Greece.

Obviously, some parties on the left were opposed, but all in all I

think it went smoothly. It passed with a comfortable majority. What

about out in the wider population? We see people throwing stones, but

beyond that is their support in the country for what is being done in

Parliament? Obviously, nobody likes this. You have to bear in mind we

have been through this programme for almost two years. There is more

to come. Obviously, people are not fond of that. At the same time, 70%

of the Greek population wants to stay in the eurozone. The current

prime minister, Mr Papademos, has made quite clear that this is a way

for Greece to stay in the eurozone. In that respect, I believe that

these measures are not something that make any Greek people happy,

but at the same time, Greeks hope that through these measures we can

stay in the eurozone and become more competitive. I think that most

of the population still believes this is the way to go, even though

it hurts a lot. Thank you very much.

Let's go to Brussels. A popular think tank that advises governments,

Redefine, is speaking with us now. These measures will work. I think

that the answer is, almost across the board, in the face of the

social fabric of Greece being almost torn apart, the fact that

the economy is still in freefall... It seems highly unlikely, or

whether the parliament has voted on some measures or not, that the

government will be able to implement these in the face of the

economic and social position within the country. Therefore, the natural

progression of things would be a default and then leaving the

eurozone? I am not sure. That is not a particularly satisfactory

answer. One thing is clear - we need a change of course, both from

the perspective that the European Union and the IMF is asking Greece

to follow... I think there is a strong need four-course corrections

where it leaders need to make changes and demonstrate their

efforts and demonstrate good faith in order to avoid an even worse

outcome, which would be a eurozone exit. What would this direction be?

What kind of changes? What else is there they can do? The reforms have

not been enacted. In terms of austerity, slowing down the pace of

austerity, getting the European Investment Bank to put money into

Greece to stimulate growth, to change the mood in Greece so that

people and businesses, very importantly, expect that tomorrow

or the day after tomorrow, will be better than today. Right now there

is no light at the end of the tunnel in Greece. The people

realise this. They realise the fundamental problems.

Some weaker than expected growth from Japan - the economy shrank 2.3

% on an annualised basis. The Cabinet Office remained upbeat.

Let's go to Tokyo. Take us through - it seems they have been hit by a

storm of bad news. Can you explain what the things are that have

affected this outcome? What we are seeing here it is external factors

battling against internal factors. The reconstruction after the

earthquake and March tsunami should mean that Japan's economy is doing

well. The crisis in Europe is hurting Japan, the yen is strong,

undermining the competitiveness of Japanese companies because of the

prices in Europe. Last year, the floods in Thailand, lots of

Japanese companies have factories there, they were hit. On a quarter

by quarter basis, Japan's economy shrank by 0.6%. On an annualised

basis, if it continues on that projection, it will be a decline of

2.3%. Bad news for Japan's economy. Obviously the Thailand factor will

work its way out of the figures. The other two things - is there

anything that the government or the Bank of Japan can do to put things

right was met the Bank of Japan is beginning a two game monetary

policy meeting today. It is possible thessible theect -- two

day.... Tete que will file its quarterly earnings tomorrow.

In the United Kingdom, modest growth should start later this year.

Growth of 0.9% in 2012 was achieved and 2% next year is forecast...

There should be new equipment and new markets found.

President Barack Obama is expected to announce short-term measures to

speed up the nation's economic recovery. That comes together with

taxes on corporations and the rich. The new budget has to be agreed

between the White House and Congress, which means months of

political wrangling. Let's look at a -- let's look at