:00:05. > :00:15.newspapers he was in charge of. Now it is time for the latest
:00:15. > :00:21.
:00:21. > :00:26.financial news. The headlines: Going Dutch. The
:00:26. > :00:36.eurozone's consensus starts to unravel.
:00:36. > :00:41.Benetton's founder prepares to step down after 47 years.
:00:42. > :00:46.The collapse of the Dutch coalition government has sent shockwaves from
:00:46. > :00:55.Europe and global markets. Until the weekend of the Netherlands was
:00:55. > :01:05.judged to be part of the eurozone's safe course. Prime Minister Mark
:01:05. > :01:05.
:01:05. > :01:15.Rutte's failure to push through budget cuts... To talk us through
:01:15. > :01:17.
:01:17. > :01:22.some of the factors that spooked investors I welcome my guest. The
:01:22. > :01:32.poor economic data was unexpected? It was. Eurozone economies expected
:01:32. > :01:36.to be confirmed to be in recession for the first quarter. They were
:01:36. > :01:41.expected to be better than they were. What the numbers suggest is
:01:41. > :01:46.that the economy really is dragging along the bottom. On top of that we
:01:46. > :01:50.have negative political developments. Tell us how
:01:50. > :01:55.significant what happened in the Netherlands is and what it means
:01:55. > :02:05.for the eurozone. It has been largely ignored because of focus on
:02:05. > :02:06.
:02:06. > :02:10.a southern European economies. is a well structured economy. We
:02:10. > :02:16.have opposition against austerity. Some of the GDP data from the
:02:16. > :02:20.Netherlands last year was disappointing. Some stresses were
:02:20. > :02:24.appearing about further cuts. This is why the coalition broke down.
:02:24. > :02:33.One of the coalition partners refused to endorse the extra
:02:33. > :02:40.austerity needed. This is becoming a real theme - backlash against
:02:40. > :02:47.austerity. It is a theme in France with Francois Hollande and Nicolas
:02:47. > :02:52.Sarkozy talking about focusing on growth. It is difficult to sell the
:02:52. > :02:57.austerity measure, isn't it? That is right. Looking at the protests
:02:57. > :03:03.in Greece, in Spain. When you see it go into France and the
:03:03. > :03:09.Netherlands you begin to wonder if the eurozone really can remain on
:03:09. > :03:15.this track to bring in further austerity. I know Angela Merkel is
:03:15. > :03:20.determined and those at the ECB but say he didn't, people do things to
:03:20. > :03:25.get some growth going, why would that be such a bad thing?
:03:25. > :03:31.difficulty is getting the right policies in place. Policies aimed
:03:31. > :03:37.at generating growth have some form of fiscal spend and that is what
:03:37. > :03:41.they are trying to bring back. This is not particularly new. Going back,
:03:42. > :03:51.some of the EU summits in the past few months were designed to support
:03:52. > :03:58.
:03:58. > :04:04.growth but they were hijacked with respect to Greece. Trying to find
:04:04. > :04:10.policies... The Holy Grail of Economics. Thank you for that. You
:04:10. > :04:14.will be back later to discuss the newspaper stories.
:04:14. > :04:21.Apple is reporting second-quarter earnings later. Its stock has been
:04:21. > :04:28.hit recently. It has been turbulent ahead of these numbers. It'll be
:04:28. > :04:33.iPad and iPhone numbers that will hold it up. After meteoric games
:04:33. > :04:38.since the start of the year the Apple share price has been falling
:04:38. > :04:47.recently. The frenzied scenes that greeted
:04:47. > :04:54.the launch of products like the on those fine and iPad -- of the
:04:54. > :05:00.iPhone and iPad have increased their success. Earlier this month
:05:01. > :05:04.Apple shares peaked at $643 making it by far the world's most valuable
:05:05. > :05:11.company. In the last couple of weeks the trend has been the other
:05:11. > :05:16.way. Shares are down about 10%. Is this a temporary dip or a worrying
:05:16. > :05:24.new trend? I would not read anything into the sell-off from the
:05:24. > :05:29.highs that were very high for Apple to where it is right now. It is a
:05:29. > :05:33.mellow a sell-off in the stop. People are waiting to see the
:05:33. > :05:39.numbers and maybe what products are out there to stoke the growth going
:05:39. > :05:49.forward. Apple is facing greater competition for smartphones,
:05:49. > :05:54.
:05:54. > :06:00.cheaper devices running Google's and droid platform. -- S Android.
:06:00. > :06:08.But Apple has some things in its favour. We think in 12 months we
:06:08. > :06:16.will have a couple of massive product introductions - the iPhone
:06:16. > :06:21.five. For shoppers here in Manhattan they probably don't care
:06:21. > :06:26.too much about the share price. The next few months will be nervous for
:06:26. > :06:30.investors as they wait the launch of the next generation of iPhone.
:06:30. > :06:40.Some say Apple could yet become the world's first trillion dollar
:06:40. > :06:46.company. After 47 years at the helm, the
:06:47. > :06:51.chairman of Benetton is expected to stand down. His son will take over.
:06:51. > :06:58.He faces a challenge to restore the fortunes of the high-street
:06:58. > :07:08.retailer. Competition that respond instantly to market trends is
:07:08. > :07:09.
:07:09. > :07:17.emptying its stores. It will unveil its earnings later a today. Big
:07:17. > :07:23.changes for Benetton? He has been running the company for 47 years.
:07:23. > :07:27.It is a family dynasty. They have had a level of extraordinary
:07:27. > :07:36.success in launching their company and maintaining its position in the
:07:36. > :07:46.market. It is 47 years since the company was founded and today the
:07:46. > :07:50.
:07:50. > :07:57.founder will an ounce for handing over to his son. -- will announce
:07:57. > :08:00.the. Last year they failed to deliver a dividend and there has
:08:00. > :08:07.been criticism about the advertising campaign, very
:08:07. > :08:12.provocative. Tell us about his plans. The company is in a bit of
:08:12. > :08:21.trouble at the moment. It recently delisted from the Milan stock
:08:21. > :08:26.exchange. He may well decide to have more centralised control over
:08:26. > :08:35.the business. It has been based on franchising so far. The market
:08:35. > :08:45.feels that the company has failed to have this instant response in
:08:45. > :08:52.
:08:52. > :09:02.this fast and fashion business. I was walking through a tsar -- Zara
:09:02. > :09:02.
:09:02. > :09:07.store. There is talk of expanding the business in Asia. Thank you
:09:07. > :09:12.very much. Big changes at Benetton today.
:09:12. > :09:17.Facebook came out with news that their earnings fell 12% in the
:09:17. > :09:22.first three months of the year. You can see markets today are not
:09:22. > :09:28.having a good session at all in Asia. 40 minutes ago the markets,
:09:28. > :09:34.most of them were higher. It is only Japan down a bit. We are
:09:34. > :09:39.seeing losses across the board at the moment. Concern in Asia at the
:09:39. > :09:45.eurozone debt crisis. Many of the big economies in Asia export to