:00:03. > :00:13.will unveil his presidential election manifesto later today. Now
:00:13. > :00:20.
:00:20. > :00:27.it is time to get the latest Pillow and a warm welcome. -- hello.
:00:27. > :00:36.Back on red alert: Market's drop sharply after a Spanish bond
:00:36. > :00:46.auction flops. And Japan's market is that before
:00:46. > :00:48.
:00:48. > :00:52.we coal. Investors are counting the losses. -- 4-week low. Can it
:00:52. > :00:59.really restore growth and jobs? Labour reforms are dividing the
:00:59. > :01:04.country. Good to have you with us. Investors have been far more
:01:04. > :01:09.willing to lend to the eurozone over the last three months. That is
:01:09. > :01:14.largely thanks to one trillion Euros in cheap loans from the
:01:14. > :01:21.European Central Bank. Confidence is already fading. Spain is
:01:21. > :01:29.struggling to borrow money on financial markets. An auction of 5-
:01:29. > :01:35.year bonds did not find enough buyers. The stock markets in Europe
:01:35. > :01:40.sank. Let's remind ourselves of the significant falls in the share
:01:40. > :01:45.markets. There are predictions that the markets will open flat. These
:01:45. > :01:55.are the markets in Asia. Rico Hizon will talk us through them in a few
:01:55. > :01:56.
:01:56. > :02:04.moments. You can see some of the false here. The US has been sued by
:02:04. > :02:09.the News of the lacklustre Spanish bond auction. The crisis is back on
:02:09. > :02:14.our doorstep. Rico Hizon is watching the markets in Asia. This
:02:14. > :02:20.is having a big impact were you are as well, isn't it? Yes indeed.
:02:20. > :02:28.Share prices are weak for a second day. Europe's debt problems have
:02:28. > :02:34.surfaced yet again. Japan, South Korea, Australia, and they are all
:02:34. > :02:37.struggling. Take a look at the numbers. Markets are being
:02:37. > :02:43.supported by better than expected economic data coming from China.
:02:43. > :02:52.That was earlier today that was released. The services sector is
:02:52. > :02:57.expanding in the month of March. 11 month highs. Financial reforms are
:02:57. > :03:02.being announced by Beijing on Wednesday. That is pushing Shanghai
:03:02. > :03:12.she has into positive territory after a 3-day holiday. -- Shanghai
:03:12. > :03:17.shares. There is a renewed risk of a version for Asian equity.
:03:17. > :03:22.Diminishing hopes of more monetary easing from the US. The potential
:03:22. > :03:27.fading effect of the European Central Bank's huge liquidity
:03:28. > :03:32.investments. Investors are concerned about the inflation
:03:32. > :03:40.picture and the mixed results with economic and monetary policy out
:03:40. > :03:47.looks. Asian central bankers are continuing to support growth. They
:03:47. > :03:53.are still concerned about price hikes. Christian Schulz is here.
:03:53. > :03:58.Than you for being on the program. Give us your perspective on what
:03:58. > :04:06.happened yesterday. -- thank you. It was not just Spanish debt, it
:04:06. > :04:14.was Italian, Greek, Portuguese... It was the return of contagion.
:04:14. > :04:22.There has been a lot of bad month - - bad news over the last month. We
:04:22. > :04:27.have had these Spanish problems. Beyond Spain, problems in Italy,
:04:28. > :04:33.for there was no major news apart from reform in the labour market.
:04:33. > :04:38.In Greece, also, little news. Contagion is spreading
:04:38. > :04:47.indiscriminately. For the first time this year, amass sell off.
:04:47. > :04:50.That is a shift in mood. We had pumped all of that money into the
:04:50. > :04:54.markets. We thought the market would discriminate between
:04:54. > :04:58.different countries. Small countries with acute problems like
:04:58. > :05:04.Greece and large problems -- large countries with relatively small
:05:04. > :05:12.problems like Italy. Italy in particular is too big to be rescued
:05:12. > :05:18.with the existing rescue facilities. 800 billion euros. It would be a
:05:18. > :05:22.huge problem. This is what we would need to watch. The Prime Minister
:05:22. > :05:27.of Spain has raised the question of an international bail-out again
:05:27. > :05:32.this week. He said that Spain was in an extremely difficult position.
:05:32. > :05:38.As always with politicians there is a domestic and an international
:05:39. > :05:43.message to what they say. He is going through a tough phase. He has
:05:43. > :05:50.unveiled a budget which is very tough. He used to get domestic
:05:50. > :05:57.support. Briefly, another set of cheap loans from the European
:05:57. > :06:02.Central Bank is necessary? They are not planning another injection of
:06:02. > :06:06.liquidity. They have set up conditions in which they would.
:06:06. > :06:13.Given the renewed panic, we need something to stop it if need be.
:06:13. > :06:18.That would be very helpful. very much, Christian Schulz. -- I
:06:18. > :06:23.thank you very much. Let's turn to another part of the drama. After
:06:23. > :06:28.weeks of wrangling with unions, Mario Monti has finalised his plans
:06:28. > :06:33.for reform of the labour market in Italy. The reforms would make it
:06:33. > :06:41.easier to fire workers. It is supposed to help businesses create
:06:41. > :06:47.a vital jobs. The package will go before Parliament. The response
:06:47. > :06:53.will be decided today. An efficient Italian workforce,
:06:53. > :07:00.that is the goal of Mario Monti's latest political reforms. They
:07:00. > :07:05.include the listening of rigid employment law. -- the include
:07:05. > :07:13.softening employment laws. This woman says it will help it to take
:07:13. > :07:20.on new people. She is head of a business confederation. She is the
:07:20. > :07:25.CEO of a company that employs 7,000 people worldwide. You want to train
:07:25. > :07:31.your employees and keep them with you. If you had bad employees, this
:07:31. > :07:38.happens every where, you should have the right to get rid of them.
:07:38. > :07:46.The unions are at the heart of workers' writes. They say the
:07:46. > :07:53.reforms do not address the fundamental problems. This will not
:07:53. > :07:57.create new jobs. It will make it easier to dismiss people. We do not
:07:57. > :08:07.agree with this. For the students, the world of work is already
:08:07. > :08:10.
:08:10. > :08:16.changing. There is little stability, like that enjoyed by their parents.
:08:16. > :08:23.It is difficult to find a job. There is no chance for us. They
:08:23. > :08:32.only want people with 10 years' experience. I don't want to end up
:08:32. > :08:37.like my father. He has been working in the mind since he was 15 years
:08:37. > :08:46.old. He will probably do that until he is 78. It is all about changing
:08:46. > :08:54.the Italian view. The Italian search for a job for life could be
:08:54. > :09:00.abandoned. We have opportunities in Italy. If
:09:00. > :09:04.you can do it, you can do it. Italians, this debate is as much
:09:05. > :09:14.about change as reform. For the Prime Minister, it will be his
:09:15. > :09:20.
:09:20. > :09:30.Banks are expected to keep their rate low until well into next year.
:09:30. > :09:34.The big debate as to whether to inject more money into the economy.
:09:34. > :09:42.There are signs that the UK may be returning to recession.
:09:42. > :09:47.The New York has opened to the press ahead of its opening
:09:47. > :09:54.tomorrow.... The economy improves, with some seeing sales jump by as