:00:03. > :00:13.in a bid to end the deadlock. Those are the latest headlines. Time for
:00:13. > :00:19.
:00:19. > :00:25.the World Business Report. Welcome. The end of the raid - Piat bosses
:00:25. > :00:35.meet Mario Monti to discuss the future of their Italian factories.
:00:35. > :00:36.
:00:36. > :00:41.India's government unveils the national budget. Fear's car
:00:41. > :00:47.assembly line is said to ground-to- air hold on Friday as a strike
:00:47. > :00:51.begins. It is against changes of pay and conditions by the motor
:00:52. > :00:59.giant. They will also need to Mario Monti. There will Addy the changes
:00:59. > :01:09.are essential if they want to make cars across the country. DX only
:01:09. > :01:09.
:01:09. > :01:19.makes half -- five funded 1,000 cars a year. That loses the firm at
:01:19. > :01:20.
:01:20. > :01:28.five per hundred million euros a year. -- 500,000. The market here
:01:28. > :01:32.is flat. Its real proper centre is in America. They had a plan to use
:01:33. > :01:37.its under-used Italian factories to make cars for export to America.
:01:37. > :01:43.But for that plan to succeed, the factories will have to be more
:01:43. > :01:51.efficient. Workers have been protesting against any change to
:01:51. > :02:00.their employment terms. If he can get his cost base right, he Denise
:02:00. > :02:06.Italy as a base to exploit work. makes sense but he is saying it is
:02:06. > :02:11.impossible to do that unless they have new working practices. He says
:02:11. > :02:19.he wants a new way of working so he does not have to fire people.
:02:19. > :02:29.are also lobbying for a D EU support. National politicians
:02:29. > :02:30.
:02:30. > :02:36.should not be allowed to stop them. Whenever there is a problem, in net
:02:36. > :02:42.result of all the subsidies means nobody can make any money. It is
:02:42. > :02:51.ridiculous. Eight carmakers also want to serve -- solve this by
:02:51. > :02:56.merging with other carmakers. But this is not guaranteed to work.
:02:56. > :03:06.Across Europe, politicians still fear the damage it could do it car
:03:06. > :03:06.
:03:06. > :03:10.plants were to close on their watch. The winding up committee will
:03:10. > :03:13.release 635 million euros of compensation on Friday. They
:03:13. > :03:19.collapsed four years ago during the financial crisis and owes hundreds
:03:19. > :03:29.of millions of dollars. Priority creditors will get some of their
:03:29. > :03:30.
:03:30. > :03:38.money back. Others will have to wait longer. Welcome. There were
:03:38. > :03:44.one of a group of banks which collapsed in 2008. There were three
:03:44. > :03:54.banks which collapsed. This one was the smallest. It is now paying out
:03:54. > :04:01.its priorities creditors. That is what is being paid out now.
:04:01. > :04:10.cuts have had a devastating and prolonged affect on the economy.
:04:10. > :04:20.Iceland took a huge hit. But it is bouncing back. There is great again.
:04:20. > :04:21.
:04:21. > :04:27.Iceland is doing pretty well. The government did not save its banks.
:04:27. > :04:37.It has made quite a difference. Economy has had to be balance and
:04:37. > :04:39.
:04:39. > :04:49.reduce its independence on the backing sector. Yes. The economy
:04:49. > :04:50.
:04:50. > :05:00.has bounced back. The banking sector is about two times BDDP. It
:05:00. > :05:02.
:05:02. > :05:07.is a much more human scale for a small country like Iceland. -- GDP.
:05:07. > :05:12.Let's take a look at other news. European leaders have agreed to ban
:05:12. > :05:19.financial transfers for blacklisted at Iranian people and firms. It
:05:19. > :05:23.will start on Saturday. It is the latest in a new round of sanctions
:05:23. > :05:27.intended to persuade Iran to end his development of nuclear
:05:27. > :05:29.technology. The EU has also banned oil imports from the Middle East
:05:29. > :05:36.nation. More destruction for passengers
:05:36. > :05:41.across Europe as pilots are of a Spanish carrier hat -- will begin a
:05:41. > :05:45.24-hour strike. They are protesting against company plans to set up a
:05:45. > :05:53.low-cost carrier which they say could jeopardise existing pay and
:05:53. > :05:58.conditions. India's finance minister is said to
:05:58. > :06:05.unveil his national budget around now. The government faces economic
:06:05. > :06:12.-- slowing economic growth. In need of large-scale investment and
:06:12. > :06:18.infrastructure calls for more populist measures.
:06:18. > :06:23.Balancing books will be eight key challenge for the finance minister.
:06:23. > :06:28.After a poor performance in recent state polls, expectations of any
:06:28. > :06:33.bold policy movements are already running low. Eight struggle to
:06:33. > :06:41.deliver on last year's budget targets. He had pledged to reduce
:06:41. > :06:51.the fiscal deficit to 4.6% of GDP. With revenues coming in short and
:06:51. > :07:00.expenditure over shooting, it is expected to be closer of 6% of.
:07:00. > :07:05.will be essential sense of the budget. Everything will be looked
:07:05. > :07:10.at closely. The project comes at a tough time for the Indian economy.
:07:10. > :07:16.Interest rate and inflation have been running high. Economic growth
:07:16. > :07:22.has been slowing down. What can the government do to get India's
:07:22. > :07:27.finances back into shape? On one hand, they could try to rein in
:07:27. > :07:34.spending. But that could be tricky. Any cut in subsidies will prove
:07:34. > :07:38.deeply unpopular. Higher oil prices are already putting pressure on his
:07:38. > :07:46.field. The government's ambitious so due to programme is set to be
:07:46. > :07:56.very costly. -- security. Expects in some of the measures could
:07:56. > :07:58.
:07:58. > :08:05.include a roll back of cuts. It could sell off more state owned
:08:05. > :08:13.assets. And the re auction of council line scissors along with
:08:13. > :08:17.telecom licences. It could be a windfall for the government. If no
:08:17. > :08:21.beaded bag reforms come out today, the government will have to share
:08:21. > :08:31.its serious about its policy agenda by laying out a Eumundi Road for
:08:31. > :08:32.
:08:32. > :08:39.those reforms which lie ahead. -- Road.
:08:39. > :08:47.Now for a look at the markets. We have had strong that US economic
:08:47. > :08:52.data which has been absorbed by the markets. The benchmark Nikkei has
:08:52. > :08:56.made a gain of about 20% since the beginning of January. That is after
:08:56. > :09:01.it fell quite significantly between April and December of last year.
:09:01. > :09:09.This is what the markets are doing this year. Strong gains in the wake
:09:09. > :09:17.of a deal with Greece's bail-out. And the strong US economic figures.