:00:03. > :00:13.Those are the latest headlines. It is not time for the latest
:00:13. > :00:21.
:00:21. > :00:26.Hello and welcome it. The headlines: Greece has until tonight
:00:26. > :00:36.to clinch a deal with its private lenders then secure a new bail-out.
:00:36. > :00:37.
:00:37. > :00:46.Reports indicated may have enough. Japan records its biggest-ever
:00:46. > :00:51.deficit in January. GDP data reveals the picture was not as bad
:00:51. > :00:54.will stop a profitable year for Airbus owner EADS as it outsells
:00:54. > :01:04.arch-rival Boeing. Could a big merger in the west be
:01:04. > :01:05.
:01:05. > :01:11.next? It is deadline day for Greece in
:01:11. > :01:18.its bid to reach the deal with private lenders and claim a
:01:18. > :01:22.membership of the euro. Investors have until 10pm to agree to swap
:01:22. > :01:26.their Greek government bonds for any debts that are worth 70% less.
:01:26. > :01:31.The deal is a condition for the second bail-out. If it fails there
:01:31. > :01:36.will be no more money from Europe and the IMF and Athens will default.
:01:36. > :01:40.So far, the indications are they may have done it. Greece needs
:01:40. > :01:45.three-quarters of its bondholders to except the deal for voluntary
:01:45. > :01:49.participation. If it does not, it will require at least two-thirds of
:01:49. > :01:55.bond holders to take part so that Athens can use its so-called
:01:55. > :02:03.collective action caused and forced the rest to agree. So far, holders
:02:03. > :02:09.of at least 60% of the bonds say they will take part. Patrick
:02:09. > :02:15.Armstrong is one of the bond holders who is refusing to accept.
:02:15. > :02:21.What are you holding at the moment? Are a very small weight in the much
:02:21. > :02:26.20th bombs. We have a fractional percentage in our part for years.
:02:26. > :02:34.We bought end-August bond that immature. We took a position where
:02:34. > :02:38.we shorted the banks. We benefited from falling back prices. If Greece
:02:38. > :02:41.defaulted, banks would suffer. We have lost money on the next bombs,
:02:42. > :02:46.but we made good capital on a position where we benefited from
:02:46. > :02:52.falling back prices. You cuts that both sides. You were to benefit
:02:52. > :02:57.from the Greek bonds if it was OK, but if it was not, you had a
:02:57. > :03:03.position so you would gain if the banks suffered. You're not willing
:03:03. > :03:08.to participate in this deal, why not? It is not a fair deal. All
:03:08. > :03:13.owners are being treated the same. The people who voluntary
:03:13. > :03:17.participate will get a haircut on their holdings. Banks have been
:03:17. > :03:23.Crowhurst to put his bait. The banks will be voluntarily
:03:23. > :03:26.volunteering in Greece, but they will be getting 130 billion through
:03:26. > :03:33.the back door. There is a minuscule chance that there is a high
:03:33. > :03:38.Patricia Rayson rate and Greece will not bother. -- higher
:03:38. > :03:43.participation rate. When you took out these bombs last year, you knew
:03:43. > :03:48.Greece was in trouble. You are taking a position to benefit. Some
:03:48. > :03:55.would look at UN say, you're a player in this market. You have
:03:55. > :03:59.made the situation worse. You have caused the market even more acute.
:03:59. > :04:05.Greek people have had to swallow all these horrible changes because
:04:06. > :04:11.of the market. We were supporting Greece by applying Greek bombs.
:04:12. > :04:16.she were shorting European banks. You could say we made it worse by
:04:16. > :04:22.shorting the banks, but we were supporting Greece. It was a mutual
:04:22. > :04:29.trade. You have explained why you do not want to participate. It is
:04:29. > :04:36.an unfair deal. But you will be forced anyway probably. Inevitably.
:04:36. > :04:43.Why not vote in favour in the first place? The clause will make it a
:04:43. > :04:47.default. By triggering the collective action causes, it will
:04:47. > :04:51.cause the default. It is calling a spade a spade. There is a small
:04:51. > :04:58.chance that they do not trigger the reflection active -- reflective
:04:58. > :05:03.action caused. So there is a high up the dish a patient rate, they
:05:03. > :05:08.may not bother. If they don't get to 66%, I don't think it is
:05:08. > :05:13.possible. People are looking on from the outside en scene, surely
:05:13. > :05:19.they are better raft to participate and agree. This deal has to be
:05:19. > :05:25.better than Greece completely defaulting. Greece defaulting in a
:05:25. > :05:29.disorderly banner would be bad news for markets. The IMF would come in
:05:29. > :05:35.and pump liquidity into the system. I don't think it would be as bad as
:05:35. > :05:41.people are worried about. Banks can prepare for this. And don't think
:05:41. > :05:48.it would be that bad. We will have to leave it there. Thank you for
:05:48. > :05:52.coming onto the programme. It is a story we will be across for
:05:52. > :05:56.you throw out the date here on the BBC.
:05:56. > :06:00.One year since the devastating earthquake end tsunami in Japan.
:06:00. > :06:10.There has been some encouraging news about how the Japanese economy
:06:10. > :06:12.
:06:12. > :06:17.is doing. Tell us more about Japan. Two contrasting features on the
:06:17. > :06:23.state of the Japanese economy. You mentioned the GDP which is at --
:06:23. > :06:28.encouraging. But the country look its biggest-ever deficit. Exports
:06:28. > :06:38.continue to fall and rising fuel costs continue to hurt. The finance
:06:38. > :06:38.
:06:38. > :06:41.minister revealed that the broadest measure of trade gave the first
:06:41. > :06:47.native figure of January 2009. But the GDP data reveals the picture
:06:47. > :06:52.was not as bad as feared. Fresh data showed the economy shrank by
:06:52. > :06:58.just 0.2% last year and that is a narrower contraction compared to
:06:58. > :07:02.the first reading. Capital spending is also rising.
:07:02. > :07:07.Good to hear that things are looking better. We will look at
:07:07. > :07:11.some corporate stories. EADS, the parent company of Airbus, is
:07:11. > :07:15.releasing its you results shortly and they are expected to be the
:07:15. > :07:25.best for many years. They beat bowling in the battle for passenger
:07:25. > :07:26.
:07:26. > :07:31.jet orders last year. -- bowling. Our correspondent has more.
:07:31. > :07:35.He is leaving EADS in the best shape the company has ever been in.
:07:35. > :07:41.Airbus won orders for for 200 aircraft last year. Twice as many
:07:41. > :07:46.as the American rival Boeing. When he took over EADS in 2006, the
:07:46. > :07:54.company had multiple problems. Tensions between the car won't us.
:07:54. > :07:58.Insider-trading scandals. Delays in the development. The new chief
:07:58. > :08:04.executive will be the current boss of Airbus. He faces the immediate
:08:04. > :08:10.task of dealing with a safety scare over A-380s. There was a recent
:08:10. > :08:16.engine fire. His successor is encouraged -- inheriting a good
:08:16. > :08:20.product line. He has to be able to deliver it. End to quality, which
:08:20. > :08:28.is the key issue. Bowling found problems with that. Airbus has
:08:28. > :08:34.before. As well as the civilian aircraft, EADS have other branches.
:08:34. > :08:39.Helicopters, military planes. It is a strategic decision to make. Will
:08:39. > :08:44.they slimmed-down their operations to focus on civilian aircraft, or
:08:44. > :08:48.will they use some of the cash pile to make further acquisitions? There
:08:48. > :08:55.is a lot of talk about EADS penetrating further into the
:08:55. > :09:01.American market by merging with one of the defence manufacturers.
:09:01. > :09:05.aircraft a partly born in the UK, that -- in the US. A bid defence
:09:05. > :09:10.company with their partners in a military version of the Airbus.
:09:10. > :09:16.They finally did not sell it to the American forces. That is the sort
:09:16. > :09:21.of company that they could possibly by. This would bring them on to
:09:21. > :09:26.Boeing's home turf. It can try and beat it in sales of the next
:09:26. > :09:30.generation of fuel-efficient planes. It will also have to fend off
:09:30. > :09:35.increasing competition from the likes of Chinese and Russian
:09:35. > :09:40.airliners. The markets in Asia are having a
:09:40. > :09:46.good session today. Depend is certainly having a good state on