21/03/2012 World Business Report

be out of immediate danger. Those are the latest headlines from BBC

World News. Now the latest money news with World Business Report.

Hello and welcome to World Business Report. The UK Chancellor presents

his budget to parliament today, but will his changes to tax and spend

be enough to boost the flagging economy? How Portugal is coping

with austerity measures and threats of massive strikes. We have a

report from the town of Porto. Trade tensions between the United

States and China intensified. China is accused of unfair subsidies on

us all white panels. Could to help you with the pass. -- Good To Have

you with us. It's budget day here in the UK and George Osborne has a

tough task ahead. Economic growth is anaemic at best and unemployment

is at a 17-year high. The Chancellor, who has put the UK

economy on a path of austerity, has little spare cash to play with, so

tinkering with taxes is most likely. Among the measures he is expected

to announce are tax cuts paid by business and low and middle income

families. Julia Caesar reports. Kicking groove back into Britain is

a huge priority, but the Chancellor has little room to manoeuvre. With

a sluggish economy and a Euro crisis, he is trying to promote a

competitive UK. Our economy has barely grown in the last 12 months.

In the final quarter of 2011 it fell back slightly. Unemployment is

at a 17-year high. More than one million young people are unemployed.

Their outlook is far from robust. Businesses are calling for Ray

radical Budget to jump-start the economy. They want tax cuts,

investment in infrastructure, less red tape, a revolution in planning

rules and increased lending to small business. 60% of UK small

businesses are struggling to get loans. Under a new scheme they will

get credit with interest rates lower by 1%. We will see

initiatives being taken forward. Investment relief will be talked

about. We will see something about the mainstream corporate tax rate.

Also something to help low-income employees. But it will not be a big

band, because they do not have the money. How will they raise the

money? -- brain. There will be provisions to stop tax leading --

leaking through avoidance. -- bang. The Budget has to stimulate growth

and reduce spending. Ratings agencies say any sign of back-

pedalling on players to cut the deficit mean that they see UK could

be stripped of its top credit rating. This would push government

borrowing costs up. We will have coverage of that budget throughout

the day. There is also a lot of information on our website. Heat

across all our outlets. -- heat. -- keep. Greece's parliament has

approved a new international bailout deal early this morning.

The bill authorises cuts in wages, pensions and jobs. Oil prices have

fallen from recent highs after the world's biggest exporter said it

was ready to boost global supply to prevent any shortages. Saudi

Arabia's oil minister Ali al-Naimi said 11 tankers laden with crude

were sailing to the United States. Indian airline Kingfisher says it's

halting international flights as it seeks more funding. Earlier today

India's airline regulator warned it could cancel Kingfisher's licence

if owner Vijay Mallya does not come up with a viable turnaround plan.

Now we go to news of a trade war greeny between China and the US.

What is going on? -- Brewin. -- brewing. These tensions have

intensified. Solo a panel cells but the new topic. BC's after President

Baba Amr complained about rare oasis -- rare earths. -- this is

after Barack Obama. The US claims that Chinese solo panel companies

are benefiting from unfair export subsidies. So light panels are not

the only Chinese product which might become more expensive in the

US. Galvanised steel wire is another thing. The US says they

will decide whether to investigate if Chinese made stainless steel

sinks are unfairly subsidised. Earlier I spoke to an analyst in

Beijing. He said these tit-for-tat duties and complains will continue.

We will talk about it again in the future. We will see you again soon.

Back to Europe. Portugal is in focus today. We'll find out later

how the Portuguese people respond to a call from the country's

largest union for a general strike. This in protest of the continuing

austerity cuts ordered by the EU and IMF. But there's another test

for the country today, when it tries to raise billions from a

short term debt auction. Portugal's real problem is that it also needs

to return to the long-term borrowing markets. Because if it

stays locked out, it will be forced to seek yet another bailout. One

year ago, 78 billion euros looked enough, such as austerity cuts,

another rescue it is being discussed. Meanwhile, staying

afloat is a priority for family businesses wiped these third-

generation specialist food store in the city of Oporto. It has avoided

closure by sacrificing profits and avoiding price increases. -- Porto.

People do not have much money to spend. But according to these

economists, Portugal is just postponing insolvency. He says it

should renegotiate with its creditors. There is no point

delaying the moment. We should face it right now, because the situation

is not as bad as it will be in one year. The later we negotiate, the

worse it will be fought the Portuguese economy and people.

is true, but austerity has hastened a creek-style recession. But most

voters except that the vast cost of state benefits are part of the

problem. The difficulty is getting growth going. The Portuguese have

done everything they have been asked by the European partners.

Trikes -- strikes tomorrow will dent the Government was make

resolve. More negotiations with lenders look highly likely. -- the

Government's resolve. Looking at the markets, losses across the

board. This is the first day of losses in Japan for six trading

sessions. People are thinking the Chinese economy is headed to slow

down its rapid growth. The economic news coming from bitter date is

feeling bad Fiat - the mainland fecal sales this year will miss

their targets. Also, China has raised fuel prices for the second