23/02/2012 World Business Report

the RBS does not look good. The forecast for eurozone growth is

with the financial news. This is World Business report. These are

the headlines. RBS is set to reveal another massive loss stoking fresh

controversy about bonus payments. Port earnings from Hewlett-Packard

impact South Korea and Taiwan. After weak data for February,

growth forecasts made suggest a recession for there eurozone. RBS

is likely to stoke public anger in the UK reporting another year of

multi-million-dollar losses. Spectacularly bailed out by the

British taxpayers, around 80% government-owned, RBS reports

massive losses for the past four years with reports suggesting it

still plans to pay bonuses to executives. The boss, Stephen

Hester, who gave in and gave up his bonus says it's making good

progress and trying to be smaller and less risky. Once it was the

bank that spread its wings so far it was in the business of renting

aircraft. Now it comes down to worth and has sold 31 businesses

from Argentina to Kazakhstan. $922 billion worth of businesses has

been sold off. That's more than many European economy is. The thing

that is shrinking is the investment. 5,500 jobs are run the process of

going. Wet as they used to make two-thirds of the profits from now

on it will make just one per. The man in charge, Stephen Hester,

insists he is ahead of Shane Daw in clearing up this mess. He is

reducing the risk for the future. We people see the results they will

see good support for the customers, strong profits fall on going

banking, and big progress and big losses from the clean-up.

losses are part be due to the Greek debt and compensation for payment

protection insurance. Two questions remain, when will the Government be

able to sell its 80% stake? When will they make a proper? If the

economy recovers the bank will recover but if it does not it will

be sluggish and it's just the way it is organised. Investment banking,

retail banking, that emulates the economy. Next on the agenda for RBS

is the sale of its huge insurance arm, Direct Line. That will

immediately joined the list of 100 big companies in the UK. For

British taxpayers, they need a big price tag. Technology shares have

been under pressure in Asia after very poor figures from Hewlett-

Packard. We are watching them slide. At this point, take a look at Japan

and South Korea and Taiwan. The technology sector of shares is

struggling after Hewlett-Packard released earnings falling 43%.

Revenue was down 7%. Many fear that the suppliers are here in Asia.

Samsung is down 3.5%. LG is down 5%. The Japanese set that is not

affected as the bad news was offset by the weakening Japanese yen. It

depreciated since Feb wary. It's now at a seven-month low. The

falling currency is boosting profits and making Japanese

products cheaper. Fujitsu has jumped 3.8%. Sharp is up 2.2 %.

Nintendo is up 1.6%. The Japanese yen is stumbling due to resit

monetary easing by the Bank of Japan. Oil has risen to a nine-

month high. There is a worsening economic fundamentals due to the

Let's take him back to the eurozone and optimism about the Greek bail-

out is evaporating on data about manufacturing showing a surprise

fall in activity. Today, we get official growth forecast for the

main economies in Europe which may stoke fears for recession. Let's

get some analysis. To be honest, there's little reason to wonder why

the may be strong growth in Europe anyway? It set me hard to see the

growth in the short-term. Its import not to blow this out.

Estimates for the one month show small contraction. That's not very

different from January. There are risks and we may see her shallow

recession in Europe but it's not all doom and gloom. That's quite

interesting because although we get these forecasts for the year rose

which is relatively pessimistic we also have confidence of business in

Germany and they predict confidence at a seven-month high for Germany.

Germany is doing better than Greece or Portugal. It likes the currency.

German exports are competitive. That's because of the weak euro.

The bigger picture is as long as we get some return to growth in

Germany and France even modest, and the recession in the eurozone

should be relatively small. Remember that Greece is only 2% of

the eurozone. His sound quite optimistic. Since Monday many say

Greece needs a second bail-out and in a worse case scenario Italy and

Spain may spread with the contagion. The end courage in thing about the

bail-out is that it will not solve all of the problems but it doesn't

buy us time. They do not fix the problem that they buy time to sort

it out. It's not so much about Greece in terms of the economy as a

whole but it's buying time for Italy and Spain to make reforms and

continue to put the economy back on track. Does it push through with

restructuring but where does this growth come from where unemployment

is very high? UN employment in Spain is high and Italy is under

pressure but we hope that these reforms with the liberalising

markets and it will be easier for new companies to start up with

things like taxi-drivers starting a new business. Natural drive growth

but it's hard to see that coming Other business stories, Hewlett-

Packard has profits plunging 44% in the last three months with a

disappointing forecast. PC sales have slumped as can tumours turned

to tablets. -- consumers. That's the first quarter under the new EU

The French Bain has recorded a loss of $3.5 billion and has forced to

write off billions of dollars of investments in Spain and Portugal

as well as winding down businesses Markets with a lot of stories in

trade with economic news from the eurozone yesterday and from the US

reporting housing in the US was poor are and did not help sentiment.

The Japanese yen is weakening significantly against the US dollar

and has boosted the fortunes of The Dow Jones was down 0.2%. The