15/02/2012 World Business Report

Army. Thank you for joining us on World

Business Report. Sliding into recession, it figures are expected

to show the eurozone's economy contracting.

The battle for the bail-out. Finance ministers called a tough

line against Athens. At the air show in Singapore,

Evidence that the eurozone is on its way into the recession may come

later this morning. Analysts are forecasting a contraction. The

common definition of recession is two consecutive quarters of

shrinking GDP. Overall, the eurozone is expected to have shrunk

by 0.4%. As ever, they rub big regional differences. Italy has

seen its economy contract. Today's numbers could confirm that it is in

recession. While Germany is likely to pose to negative gross, it will

escape recession every ten to growth in the current first quarter.

The chief economist at a BNP Paribas or joins us now. Thank you

for joining us. Do you shared the view that we may seek a dip in

Germany's figures but things are not too bad? I think we will see

Germany shrinking in the final quarter but this year, Germany

should be able to stick with positive figures. Their economy is

doing quite well. There has been a slowdown of activity and confidence

but German confidence seems to have stabilised. We Sirb out counting on

positive growth for Germany. The periphery of Europe... We have

downgraded their forecasts. We have downgraded alt forecasts are for

the court. They'd... Italy, for example, we are likely to see it

moving into recession because we are expecting a second quarter of

contraction. Yes, it what you see with Italy is a fair dose of

austerity being unleashed on the economy which is bad for the

business cycle. Furthermore, the financial transition. From a loose

situation because of bank standards which have tightened in the

periphery. Bond yields have risen in these regions. There are clear

rifts in the periphery and the core mainly because of financial

transition which is better in the court. If we put it all together,

what do you expect for the eurozone? Will it limp along?

Basically. We are counting on a negative quarters for the first. It

will not be a deep recession but it will still be a recession. This

year as a hall, zero growth for the eurozone. Extremely weak periphery.

At zero growth for Europe. In the US, growth could be up to 2%.

Europe is decoupled from the rest of the world, global economy in a

bad way. There are hopes that another hauled

up in the signing off on Greece's latest a bail-out could be overcome.

Finance ministers called off an emergency meeting to approve it,

saying they had not received the necessary assurances. It is now

thought that the Conservative opposition leader will agree to

their demands. Our correspondent has more.

This is the Opposition leader at the centre of this hitch in

securing the new Greek rescue. He wanted them to renegotiate the loan

terms. He is reportedly now ready to put in writing that he will

stick to the additional austerity cuts that the other 16 euro members

insist on. Ministers in the parliament were far from happy to

learn that their hard one belt- tightening measures were being

labelled incomplete and far from watertight. TRANSLATION: Greece has

made all the efforts it needed to end the people cannot take any more.

The government has made superhuman efforts. The anger expressed by

some sections of society has continued to rage end is willing

further alarm bells across Europe. Several countries are losing

patience than believe Greece should not be saved. As the months have

gone by, the currency zone has become a more prepared to cope. If

the wait for the rescue continues much longer, it could still be too

late to process the funds in time and prevent default, saving grace

from what the Finance Minister has described as unimaginable hardship.

To Asia, the Singapore Air Show is in full swing. Airbus has released

its long-term forecasts as well as announcing an investigation into

the cracks which developed on the wings of A-380s. Give us the

details. The Airbus CEO says global airlines

will need more than 27,000 new aircraft worth 3.5 trillion dollars.

More than a third of the demand will be coming here from Asia. Some

of those planes are worth 1.3 trillion dollars. Airbus is

wrestling a long-time rival Boeing for this booming regional market.

Asia provided half of Airbus's 1,600 orders in 2011 while Boeing

scored its biggest deal ever when an intermediate airline agreed to

buy planes. They also addressed the issue of the cracks in the A-380s.

A thorough investigation is apparently under way to find out

how the company allowed these manufacturing flaws to develop

which led to ring cracks. He also said the planes that absolutely

safe to fly but they made a little mistake and or repairing it as

quickly as possible. We were just update you on the news

stories. Reports suggest that yahoo's step -- plans to sell its

stakes have stalled. The two parties could not agree on a tax

efficient steel. The collapse of the $17 billion sale would be a

blow to yahoo. International inspectors had to

Portugal to review the progress of the bail-out package. Still waiting

to see if it will get the next portion of its agreed loan. There

are concerns that Portugal will need further help from the EU. A

government bond auction later today. The Governor of the Bank of England

will give his quarterly growth core cast as the latest unemployment

figures are released. -- quarterly growth forecast. He is expected to

leave the door open to pumping more money into the economy. Last week

it injected �50 billion into the system.

How the Asian markets are performing. Or, we could finish on