04/04/2012 World Business Report

for the latest financial news and Hello and welcome to World Business

Report. Recession, austerity and inflation - a toxic cocktail for

the European Central Bank as it holds its monthly meeting later

today. Australia's data disappoints as an than whether reinforces a

rate cut in May. -- a rate cut Plus, Detroit's latest challenge.

Automakers face an ageing market as fewer and fewer young Americans

learn to drive. The European Central Bank holds its monthly

meeting later today - a day early because of the Easter holidays.

Global markets await the next move from ECB President Mario Draghi. He

has claimed the worst of the Eurozone debt crisis is over.

Certainly his trillion-euro injection into the banking system

in the form of ultra-cheap loans has eased the pressure. But

attention is now turning to the region's deeper economic problems.

The latest factory and jobless reports all point to the 17 nation

Eurozone slipping back into recession. Government spending is

being slashed across the region - worsening the downturn. Inflation

is stubbornly high - pushed up by oil prices and tax rises. That

means there's no room to cut interest rates any further from

their record low of 1%. And with no return to growth in sight so the

risk increases of a second bailout for Portugal or even a bailout for

Spain. I'm joined by Philip Tyson who's a strategist at the brokerage

ICAP here in London. It all sounds a depressing and a very difficult

to change? As you say, the fact we have had a trillion euros injection,

giving banks and cheap funding of 1%, and the Greek bailout, some of

the pressures have eased and some of the concerns that it is only a

matter of time before the focus of the sovereign debt crisis returns

to the market's attention. It has helped to ease the pressure in the

market fall the banks but it has not address the underlying

structural concerns in terms of growth. These economies need growth

to get out of the situation. those short-term crisis elements

have been sorted out and the firewall, the European bailout

money has been increased but it is now the long-term issues and how

they will be tackled. What can the Bank do about that? The government

spending, the changing interest rates? It could go down the Rue of

the US and the UK but they are against that because of their age-

old concern about inflation. Particularly when it is above their

target rate. What they will try and do is sit on the sideline, try and

put the emphasis on the government to solve the issues. Saying they

adjust addressing the banking issue. What they might do further along

the line, the brakes are even lower, is another long-term funding

operation and I would not rule that out at some point during the summer.

Thank you. As soon as we hear from the European Central Bank, we will

make sure you also here. A fall in demand for coal and metals has led

to an unexpected drop in Australian exports. Rico Hizon has the details

in Singapore. Col Axford, the main staple of the Australian economy

has hit bad weather and the destruction a shipment. A 7% bounce,

so we saw a drop in the trade data. A disappointing coal export numbers

put Australia unexpectedly in the red for a second month. It has

pushed the dollar on and 11-week low. The Trade and numbers follow a

string of subdued economic indicators and what could

potentially make the RBA is that the consumer price report due out

on 24th April. Looking at China. Announcing plans to free up the

financial markets? It is looking to increase investment and competition

in the financial banking sector. On Tuesday, it tripled the amount that

can be invested on the mainland. At the same time, there has been

stamens same the monopoly needs to be broken. It may boost growth and

create a more international Chinese currency. Opening up the main man

financial markets is keep to pushing it as a global currency.

Other business stories - French oil giant Total says it's sending

experts to the leaking North Sea Elgin gas platform off the coast of

Scotland later today or early tomorrow. Relief efforts have been

hampered so far by bad weather. The leak is costing Total $2.5 million

a day and poses an explosion risk but has yet to do serious

environmental damage. The company says the team will look at whether

it can be stopped by pumping mud into the well. Another option is to

dig relief wells at the source of the gas 4000 metres down but that

could take up to six months and cost billions of dollars. Fast food

chain Burger King said on Tuesday it plans go public through a deal

with a London-listed investment firm, less than two years after it

agreed to be taken private by private equity group 3G Capital

Management LLC. The quick sale highlights a profit improvement at

Burger King' Worldwide Holdings Inc, which operates more than 12,000

mainly franchise fast-food outlets around the world. Its new investor

Justice Holdings, said it expects the fast food chain's core profits

in 2012 to be almost double those in 2010, as it revamps its menu to

better compete with McDonald's Corp and Wendy's Co. Mercedes-Benz owner

Daimler holds its annual shareholder meeting in Berlin later.

March was the best ever month for sales in the history of Mercedes-

Benz. But the marque has slipped to third in the global luxury car

market behind its German rivals BMW - the market leader - and Audi,

which recently overtook it. The New York motor show opens later today -

at the end of the best quarter for US car sales since 2008. But as

auto makers celebrate their recovery from the dark days of the

crisis - a troubling trend is emerging. Fewer and fewer young

people are getting driver's licenses, whilst the number of

older drivers is rising rapidly as baby boomers age. It is a dramatic

challenge to America's car culture, as Caroline Hepker reports from New

Jersey. Learning to drive was once a rite of passage for American

taints but that has changed since driving -- says this driving

instructor. That have a million other things going on. Cars are

really expensive and the insurance is almost untouchable for some 16-

year-olds. Whether it is the cost of maintaining a car or fewer jobs

for youngsters and their parents or even that the internet means you do

not have to be in a car to stay connected, it all means there has

been a dramatic drop off -- one young Americans in cars. Today,

only about 22% a young drivers and they are driving fewer miles. Young

people say today they would prefer the Web to a set of wheels

according to researchers. I N do not think they are caught, they are

necessary. I thought it was cool and hours 15 but now I do not care

any more. I know of one other student that drives and to school.

It is not very popular. At the same time, there are more all the people

on the roads. The baby boomer generation ages and the larger

population in the 50s and 70s. So more people are driving longer as

they stay healthier and live in suburban places. There is still a

need is a mobile and they are holding on to their licences longer.

It is a dramatic change on who is on the roads that many see as the