:00:04. > :00:13.will represent England at the euro's -- Eurovision Song Contest.
:00:14. > :00:18.
:00:18. > :00:26.You're watching the World Business Report on BBC. EU leaders ask for
:00:26. > :00:36.more details before they hand over a bail-out package to Greece. Is
:00:36. > :00:40.
:00:40. > :00:45.the downturn in Europe affecting to Japan's economic recovery? Europe's
:00:45. > :00:50.leaders are in summit session in Brussels once again. The 27 will
:00:50. > :01:00.try to balance tougher austerity measures. They want to stop another
:01:00. > :01:00.
:01:00. > :01:08.recession. 25 of the 27 will agree to keep -- to bring big spending
:01:08. > :01:15.countries into line. There rides to phase two with completing tasks.
:01:15. > :01:20.They have been forced to make deficit cuts and austerity measures.
:01:20. > :01:26.Luckily, a flood of European Central Bank cash has calmed the
:01:26. > :01:35.debt market. 25 of the 27 was signed up to much tighter spending
:01:35. > :01:44.rules. They will vote for the EU President to chair future euro area
:01:44. > :01:49.summits. A promise deal to boost future bail-out by power has been
:01:49. > :01:59.denied. They want Germany to pledge more for the permanent rescue
:01:59. > :02:00.
:02:00. > :02:10.flight -- fund. The commitment was to reassess the adequacy of the
:02:10. > :02:12.
:02:12. > :02:19.overall lending capacity in March. Now we can do it, but we are still
:02:19. > :02:25.in February and we can have a good progress on these matter later. The
:02:25. > :02:29.world is watching Europe's decision carefully. The leaders know they
:02:29. > :02:35.must dig deeper into their own pockets before other countries will
:02:35. > :02:40.step in to help contain the contagion. The EU leaders have also
:02:40. > :02:44.asked for more detail on Greek reforms before the handover the
:02:44. > :02:48.bulk of the 130 billion euros in additional aid. If satisfied, they
:02:48. > :02:58.will sign off the payment later in the mouth. They have until next
:02:58. > :03:02.Thursday to sign up to the deal. -- later in the months. The design in
:03:02. > :03:09.Brussels appears to be from move to crisis mode to growth mode. Are we
:03:09. > :03:12.ready to do that? I do not think so. There are still problems with
:03:12. > :03:17.growth. If you look at the economic data that is coming from Greece.
:03:17. > :03:21.The Greek economy is imploding. The situation on the ground is getting
:03:21. > :03:27.worse day by day. They are being asked to sign up for another eight
:03:27. > :03:30.years of austerity. They cannot contain that. Let's look at the 130
:03:30. > :03:35.billion euros. In the Financial Times there is a breakdown on what
:03:35. > :03:40.that would do. None of that will go to the Greek people. 20% will go to
:03:40. > :03:44.the Greek government. That is about it. The rest will go to rollover
:03:44. > :03:54.the existing debts in the form of interest. Essentially, even though
:03:54. > :03:59.they're talking about writing off 100 and 130 billion euros. It
:03:59. > :04:07.basically delay is inevitable. Let's talk about the issue of
:04:07. > :04:13.growth. This is a way out of the crisis? Had you get growth to
:04:13. > :04:18.happen when the oil prices are at a record high? We saw the price of
:04:18. > :04:25.crude go to 95 euros a barrel, it has never be that high before.
:04:25. > :04:31.Spain is in recession battling 22% unemployment. Greek unemployment is
:04:31. > :04:35.above 22% and youth unemployment is 50%. What is the way out of these?
:04:35. > :04:41.They need to address the debt problem essentially. Europe is
:04:41. > :04:49.drowning in debt. Until we do that, until the banking problems are
:04:49. > :04:54.fixed.... They need to recapitalise banks? They have to do that anyway.
:04:54. > :04:58.Do you do that now or five or six years down the line when
:04:58. > :05:07.essentially the prices will be higher. It will continue to fall
:05:07. > :05:11.back. The longer you at delay in addressing it did worse it will get.
:05:11. > :05:17.Nearly a year after the earthquake and tsunami in Japan, the
:05:17. > :05:19.reconstruction is now under way fit. Figures showed that people are
:05:19. > :05:24.investing in plant and machinery again which will boost national
:05:24. > :05:28.wealth. Data on Friday suggests that households continue to have a
:05:28. > :05:34.tough time. Spending was down more than expected in January compared
:05:34. > :05:38.to last year. The number of Japanese out-of-work is up. We are
:05:38. > :05:42.joined from a Tokyo bureau from a correspondent. Japan has had a
:05:42. > :05:49.long-standing problem with lack of gross and the eurozone problem is
:05:49. > :05:55.not helping? -- growth. Europe is a big market for Japan. The latest
:05:55. > :06:01.figures showed that the core Consumer Price Index fell by 0.1%.
:06:01. > :06:04.That means that it was deflation in Japan, not inflation which is a
:06:04. > :06:11.persistent problem for the country. Last month the Bank of the Japan
:06:11. > :06:16.said for the first time that it is targeting a long-term 1% inflation.
:06:16. > :06:22.Earlier this week, they were supporting better news. Capital
:06:22. > :06:26.expenditure was up by 7.6%. The reason why is that spending on
:06:26. > :06:31.reconstruction, replacing factories, and also reconnecting transport
:06:31. > :06:35.links in the North have helped the economy there. On one side, the
:06:35. > :06:38.economy is doing very well. They are still struggling in the House
:06:38. > :06:44.of however. The central bank is doing the best they can to push
:06:44. > :06:49.inflation higher and therefore demands? Yes, the central bank has
:06:49. > :06:55.expanded in Sev -- recent weeks. Monetary policy has increased the
:06:55. > :06:59.money supply and setting the target as well. If you look closely at
:06:59. > :07:05.these inflation figures, it shows that the problem he's structural in
:07:05. > :07:12.Japan. Potentially, something to do with globalisation. A big party is
:07:12. > :07:17.the price of television's falling by one-third. -- a big problem. The
:07:17. > :07:23.Japanese are increasingly buying televisions from cheaper economies
:07:23. > :07:28.are bored -- abroad. It is contributing to companies facing
:07:28. > :07:32.pricing pressures. They are looking for bargains. On the streets in
:07:32. > :07:39.Tokyo, what is your feeling? Is there optimism that the state of
:07:39. > :07:44.the Japanese economy, because Asia continues to grow? In recent weeks,
:07:44. > :07:49.the Japanese currency has declined against the American dollar, for
:07:49. > :07:53.Japanese companies that is good news. Their exports become more
:07:53. > :07:58.competitive and it certainly helps the stock market. In that sense,
:07:58. > :08:02.there is optimism about the future. When we talk about the Japanese
:08:02. > :08:08.stagnation, Japan is stagnating at a very affluent place. Unemployment
:08:08. > :08:12.is only 4.6%. Most people are pretty well off. Even though the
:08:12. > :08:17.economic figures look bad, on the streets and in the restaurants,
:08:17. > :08:24.people do seem to be getting on with their lives. Paint you very
:08:24. > :08:28.much. Other stories making the news on Friday -- thank you. Kodak has
:08:28. > :08:35.sold its online service to online publisher shatter fly for $24
:08:35. > :08:39.million. They have 75 million euros it -- users. They have very stop
:08:39. > :08:47.selling film and plans to withdraw from photography entirely by the
:08:47. > :08:57.end of the Year. They ran up large losses in January. So far, Barbie
:08:57. > :08:57.
:08:57. > :09:04.has been upstaged after an up your -- and 80 battle. Mattel were not
:09:04. > :09:09.receive compensation after a court ruled today. A US federal court
:09:09. > :09:15.disagreed and reversed a 310 million dollar damages. Mattel is
:09:15. > :09:18.now appealing against a ruling. While the injection of cheap loans
:09:18. > :09:25.into the market by the European Central Bank is inevitably having
:09:25. > :09:30.an effect on markets, the Asian markets are not doing badly at all.
:09:30. > :09:40.The euro has been flitting around recently. With prospects of the
:09:40. > :09:41.