16/03/2012 World Business Report

in a bid to end the deadlock. Those are the latest headlines. Time for

the World Business Report. Welcome. The end of the raid - Piat bosses

meet Mario Monti to discuss the future of their Italian factories.

India's government unveils the national budget. Fear's car

assembly line is said to ground-to- air hold on Friday as a strike

begins. It is against changes of pay and conditions by the motor

giant. They will also need to Mario Monti. There will Addy the changes

are essential if they want to make cars across the country. DX only

makes half -- five funded 1,000 cars a year. That loses the firm at

five per hundred million euros a year. -- 500,000. The market here

is flat. Its real proper centre is in America. They had a plan to use

its under-used Italian factories to make cars for export to America.

But for that plan to succeed, the factories will have to be more

efficient. Workers have been protesting against any change to

their employment terms. If he can get his cost base right, he Denise

Italy as a base to exploit work. makes sense but he is saying it is

impossible to do that unless they have new working practices. He says

he wants a new way of working so he does not have to fire people.

are also lobbying for a D EU support. National politicians

should not be allowed to stop them. Whenever there is a problem, in net

result of all the subsidies means nobody can make any money. It is

ridiculous. Eight carmakers also want to serve -- solve this by

merging with other carmakers. But this is not guaranteed to work.

Across Europe, politicians still fear the damage it could do it car

plants were to close on their watch. The winding up committee will

release 635 million euros of compensation on Friday. They

collapsed four years ago during the financial crisis and owes hundreds

of millions of dollars. Priority creditors will get some of their

money back. Others will have to wait longer. Welcome. There were

one of a group of banks which collapsed in 2008. There were three

banks which collapsed. This one was the smallest. It is now paying out

its priorities creditors. That is what is being paid out now.

cuts have had a devastating and prolonged affect on the economy.

Iceland took a huge hit. But it is bouncing back. There is great again.

Iceland is doing pretty well. The government did not save its banks.

It has made quite a difference. Economy has had to be balance and

reduce its independence on the backing sector. Yes. The economy

has bounced back. The banking sector is about two times BDDP. It

is a much more human scale for a small country like Iceland. -- GDP.

Let's take a look at other news. European leaders have agreed to ban

financial transfers for blacklisted at Iranian people and firms. It

will start on Saturday. It is the latest in a new round of sanctions

intended to persuade Iran to end his development of nuclear

technology. The EU has also banned oil imports from the Middle East

nation. More destruction for passengers

across Europe as pilots are of a Spanish carrier hat -- will begin a

24-hour strike. They are protesting against company plans to set up a

low-cost carrier which they say could jeopardise existing pay and

conditions. India's finance minister is said to

unveil his national budget around now. The government faces economic

-- slowing economic growth. In need of large-scale investment and

infrastructure calls for more populist measures.

Balancing books will be eight key challenge for the finance minister.

After a poor performance in recent state polls, expectations of any

bold policy movements are already running low. Eight struggle to

deliver on last year's budget targets. He had pledged to reduce

the fiscal deficit to 4.6% of GDP. With revenues coming in short and

expenditure over shooting, it is expected to be closer of 6% of.

will be essential sense of the budget. Everything will be looked

at closely. The project comes at a tough time for the Indian economy.

Interest rate and inflation have been running high. Economic growth

has been slowing down. What can the government do to get India's

finances back into shape? On one hand, they could try to rein in

spending. But that could be tricky. Any cut in subsidies will prove

deeply unpopular. Higher oil prices are already putting pressure on his

field. The government's ambitious so due to programme is set to be

very costly. -- security. Expects in some of the measures could

include a roll back of cuts. It could sell off more state owned

assets. And the re auction of council line scissors along with

telecom licences. It could be a windfall for the government. If no

beaded bag reforms come out today, the government will have to share

its serious about its policy agenda by laying out a Eumundi Road for

those reforms which lie ahead. -- Road.

Now for a look at the markets. We have had strong that US economic

data which has been absorbed by the markets. The benchmark Nikkei has

made a gain of about 20% since the beginning of January. That is after

it fell quite significantly between April and December of last year.

This is what the markets are doing this year. Strong gains in the wake

of a deal with Greece's bail-out. And the strong US economic figures.