:00:04. > :00:14.at the White House on Tuesday. Those are the latest headlines from
:00:14. > :00:17.
:00:17. > :00:22.now now with Jamie. Welcome to world
:00:22. > :00:27.business report. The credit ratings agency moody's warns of the growing
:00:27. > :00:36.risk of the eurozone debt crisis European couina's leader
:00:36. > :00:43.in waiting gets his introduction to thinks abouth his country.
:00:43. > :00:53.takes discussion prope's carbon
:00:53. > :01:00.
:01:00. > :01:04.has upgraded its view on the creditworthyness of nin
:01:04. > :01:10.countries and has warned the debt crisis has increased economic risks
:01:10. > :01:13.to the region. The agency's role is to advise investors on how likely a
:01:13. > :01:19.grade grke it more expensive
:01:19. > :01:22.for a country to borrow. It has cut countries
:01:22. > :01:27.countries including Italy, Spain and Portugal. It reviewed its view
:01:27. > :01:31.of the UK putting it on a negative outlook, there is a 30% chance of a
:01:31. > :01:37.full downgrade within 18 months. This is the first time a rating
:01:37. > :01:42.eurozone eurozone crisis erupted. Fans and
:01:42. > :01:52.Austria were put on negative a
:01:52. > :01:53.
:01:53. > :01:58.a full downgrade under like S&P much of a surprise is. We had S&P
:01:58. > :02:03.and Fitch's ratings. We know a lot of these economies are downgrade
:02:03. > :02:08.for most investors? Moody's is playing catch-up with S&P and we
:02:08. > :02:12.might expect that Fitch will follow is
:02:12. > :02:16.is the message. I know there is an going
:02:16. > :02:22.going on here? Well, there may well be, but nevertheless it is a
:02:22. > :02:27.ignore. ignore. Interestingly, the UK
:02:27. > :02:32.Chancellor has urged - said in response to this that it us
:02:32. > :02:37.is another impact, another suggestion of why. The important
:02:37. > :02:41.answer the of getting the balances - the deficit down is so important
:02:41. > :02:47.which is a message we should take from this. But will it make any
:02:47. > :02:53.huge difference? No it will no as long as we see that the governments
:02:53. > :02:58.in Europe across Europe not just in the eurozone are taking... But when
:02:58. > :03:03.were talking about this problem a Greece. When you increase the
:03:03. > :03:07.austerity a country has to go through you can reduce the GDP and
:03:07. > :03:15.make it more to reduce your deficite you can
:03:15. > :03:22.Greece is an in that i has gone below the bottom line.
:03:22. > :03:28.Gres not have the economy that can grow. It does not have the
:03:28. > :03:34.international trade kit dofplts of than generation that Greece has
:03:34. > :03:38.been paying itself too much. In eurozone is is not quite that baThey
:03:38. > :03:41.They have not gone beyond the bottom line. They have got enough
:03:42. > :03:45.revival potential in the economy to bring the deficit down and
:03:45. > :03:52.encourage growth. We have to be patient. You cannot do the two
:03:52. > :03:56.together. Growth must follow about overreacting, being too
:03:56. > :04:03.aggressive, but they were not aggressive enough when it came to
:04:03. > :04:07.the the debt whithe Lehmann
:04:07. > :04:11.overreacte overreacted and are too aggressive?
:04:11. > :04:16.I think I would be foolish to think back in the early part of this
:04:16. > :04:21.decade they failed, they absolutely failed everybody themselves
:04:21. > :04:25.investors t banks and Governments and they have overreacted over
:04:25. > :04:30.Nevertheless, Nevertheless, they are important.
:04:30. > :04:35.You cannot i. They do no other body or institution thadoes
:04:35. > :04:41.does the same thing. So we do listen to them. It is a pity that
:04:41. > :04:46.what went before 10 years ago was listen to them because there is no
:04:46. > :04:50.alternative. Howard thank you. China's Vice President Xi Jingping
:04:50. > :04:53.week-long week-long visit. He is tipped to be
:04:53. > :04:58.country country and the man who will deal
:04:59. > :05:04.with among other things the fallout from President Obama's panel toinvestigate
:05:04. > :05:09.investigate unfair trade practices by countries which include China.
:05:09. > :05:14.We report from New York. Cars hired, just one of the Chinese imports
:05:14. > :05:20.America has slap would import tariffs. It is retaliation for what
:05:20. > :05:25.practices a
:05:25. > :05:32.a tyre dealer once supported the tariff said it just does not work.
:05:32. > :05:38.I, unlike the rest of I,changed e rest of them, thing
:05:38. > :05:44.changed increases that went on that I would
:05:44. > :05:48.never see in my history of the tyre simply
:05:49. > :05:53.simply put up prices for his many
:05:53. > :05:57.many domestic jobs but the fact that China sells almost $300
:05:57. > :06:03.billion more in goods to America last year than the other way around
:06:03. > :06:08.remains a sore point here. It is noes, America has imposed
:06:08. > :06:14.tariffs on dozens of Chinese imports. People here worry about an
:06:14. > :06:19.ever-widening trade gap between the US and China - in fact it hit
:06:19. > :06:25.another record high in 2011. Washington blame China's
:06:25. > :06:29.undervalued currency ant investigate
:06:29. > :06:34.investigate unfair trade practices. Barack Obama alsodouble
:06:34. > :06:39.one one of the few countries where that
:06:39. > :06:45.has been possible. China is the fastest-growing importing country
:06:45. > :06:49.for the US S they focus on Chinese exports to the US thinking that
:06:49. > :06:53.China cannot import anything from thedible it is not truUS
:06:53. > :07:00.US exports the China is extremely success
:07:00. > :07:07.success storver angry the trade debate can seerpblgs
:07:07. > :07:17.America's and China are together - China is a rapidly expanding and
:07:17. > :07:17.
:07:18. > :07:27.huge market for US goods. Leaders to invest billions into their
:07:28. > :07:31.
:07:31. > :07:41.China summit takes place amid airline carbon emission. The start
:07:41. > :07:44.
:07:44. > :07:49.fuelled fuelled the carbon tax row.. The
:07:49. > :07:58.European Union carbon tax scheme is indeed a controversial issue in the
:07:58. > :08:02.region's biggest area pressure is a global scheme because it onlyapplies
:08:02. > :08:07.applies to carriers in and out of Europe which pay 15%. Many airlines
:08:07. > :08:12.are concerned about the unilateral Tway plan was introducr I
:08:12. > :08:15.spoke with. The EU com transport
:08:15. > :08:19.transport who said governments are at political loggerheads on how to
:08:19. > :08:28.move forward on this issue. Today you have a political conflict
:08:28. > :08:35.to numbers of possible economic impact
:08:35. > :08:45.is limited but today there is amounting political conflict.
:08:45. > :08:49.despite. The Opposition to the EU's eventually have to comply in the
:08:49. > :08:55.absence of a global tax scheme which may still take up to a year
:08:55. > :09:03.to organise and implement. Thank up-to-date with what is go on.
:09:03. > :09:09.Google's Google's purchase of Motor Mobility
:09:09. > :09:13.increased increasing Google's patent and upping its competition
:09:13. > :09:21.with Apple. The deal would not fight for competition. The company
:09:21. > :09:29.that owns the Empire Sing behind famous Manhattan skyscraper
:09:29. > :09:35.want to raise $1 billi control
:09:35. > :09:41.control of the land bark in 2010. Markets now - -- landmark. A
:09:41. > :09:46.negative response to what was happening on those downgrades by