:00:17. > :00:25.later. Welcome to the programme. Here are
:00:25. > :00:31.the headlines: Scramble for safety. Demand for UK, US debts soar as
:00:31. > :00:35.eurozone fears mount. A Asian stock market's retreat as
:00:35. > :00:39.investors feared the Greek debt crisis will spill over into Italy
:00:39. > :00:49.and Spain. India may pose the biggest growth
:00:49. > :00:53.
:00:53. > :00:57.in three years as the global Extreme times call for extreme
:00:57. > :01:03.actions. That is the feeling among many in the markets who are pouring
:01:03. > :01:13.money into safe havens. The banking crisis in Spain is far from
:01:13. > :01:15.
:01:15. > :01:20.resolved. Eight disappointing debt If you invest in the US economy for
:01:20. > :01:25.ten years, your return is a near one. 62%. The interest rate on
:01:25. > :01:28.German and UK debt will plunge as people look for places to put their
:01:28. > :01:34.money where they will believe they will get it back. The euro fell
:01:34. > :01:44.almost 4% against the dollar to its lowest level in two years. Share
:01:44. > :01:45.
:01:45. > :01:51.markets were falling heavily and global losses are being felt.
:01:51. > :01:57.Talk us through what is happening way you are. Right now, the fear
:01:57. > :02:02.among Asian investors is contagion in the eurozone. That is leading to
:02:02. > :02:05.this major sell off this Thursday in the region. The sentiment is the
:02:05. > :02:10.Greek debt crisis is engulfing bigger economies like Spain and
:02:10. > :02:15.Italy. China is not helping. Beijing said earlier this week they
:02:15. > :02:23.would be no stiffness package similar to the one in 2008 after
:02:23. > :02:33.the global financial crisis. -- Many are questioning what steps
:02:33. > :02:40.
:02:40. > :02:48.Beijing will take next as Europe's Electronics manufacturers and
:02:48. > :02:58.leading the list as Hong Kong's index Arnaud by 1.5%. Energy shares
:02:58. > :03:00.
:03:00. > :03:04.are falling. -- are Low Wood. us talk to Justin. We would put
:03:04. > :03:12.some perspective on all of this. Some are saying we are in perilous
:03:12. > :03:17.times. What is your perspective? Are people we -- over reacting?
:03:17. > :03:27.This is not an economic crisis but a lack of credit for political
:03:27. > :03:35.leadership and policy. -- credible. It has been left to the last minute.
:03:35. > :03:43.People are saying, I do not trust what is going on. We are dealing
:03:43. > :03:46.with symptoms. Spain is a symptom. So is Italy. The cause is the
:03:46. > :03:56.dissident structure in the single currency. Get that sorted out and
:03:56. > :04:04.everything else can be put into perspective. This might... If we
:04:04. > :04:10.enhance this, we can get a progress. In terms of where the money was
:04:10. > :04:18.going, he interest rates on UK debt and on the US as well, Germany is
:04:18. > :04:26.seen growth in the economy. Their economy is relatively strong. Debt
:04:26. > :04:31.levels are high in the UK and US. Explained the thinking. As the
:04:31. > :04:37.world's largest economy, the US is seen as a safe haven. Britain is a
:04:37. > :04:44.little perverse. To call it a safe haven is going too far. Its debt is
:04:44. > :04:54.managed by an agency of the Treasury. Britain does not have a
:04:54. > :05:05.
:05:05. > :05:15.debt crisis. America is 5.5 using People are not being rewarded,
:05:15. > :05:16.
:05:16. > :05:21.whether it is German debt or British dead. Let us squeeze in
:05:21. > :05:24.some other business news. Ireland is holding a referendum on
:05:25. > :05:29.whether to ratify the new fiscal pact which imposes tighter rules on
:05:29. > :05:35.government spending. This leads the backing of 12 states to come into
:05:35. > :05:40.effect. A no vote from Ireland will not scuffle it but will increase
:05:40. > :05:44.tensions on the market. Graff Diamonds shelved its billion
:05:44. > :05:54.dollars flotation on the Hong Kong stock exchange, citing adverse
:05:54. > :05:59.market conditions. The struggling travel agent was
:05:59. > :06:09.forced to ask lenders in extra funding, raising fears it was close
:06:09. > :06:15.
:06:15. > :06:20.India is releasing growth figures. Growth is expected to come in at 6%.
:06:20. > :06:25.It sounds healthy by European standards. It will be the weakest
:06:25. > :06:35.in India for three years. Economic challenges have been mounting not
:06:35. > :06:37.
:06:37. > :06:41.just from overseas but many from The hard pushed to keep India's
:06:41. > :06:46.growth machine spinning. This factory produces 16 million square
:06:46. > :06:51.metres of bed linen every year which it sells to the US and Europe.
:06:51. > :06:57.The currency should help boost its sales overseas but the owner says
:06:57. > :07:04.the company has not been benefiting because like most firms, production
:07:04. > :07:12.costs have increased. Inflation impacts us. He labour costs have
:07:12. > :07:17.increased. The transportation and fuel costs have gone higher. Our
:07:17. > :07:22.production costs have gone up because of these factors. Sales to
:07:22. > :07:30.the US have been rebuffed. The company has had no new orders from
:07:30. > :07:38.Europe in the last six months. -- robust. This sport is one of
:07:38. > :07:42.India's gateways to the world. -- port. Most companies are facing
:07:42. > :07:46.hurdles on a number of fronts. A global slowdown that is reducing
:07:46. > :07:52.demand from the outside and on the inside, high inflation coupled with
:07:52. > :07:57.a weak crop -- currency, is making everything more expensive. The
:07:57. > :08:02.trade gap is widening. There are concerns the government is spending
:08:02. > :08:08.more than it can afford. High interest rates and a lack of key
:08:08. > :08:12.reforms have dampened the economic climate. The pace of growth Bay be
:08:12. > :08:22.the envy of countries elsewhere, that many argue that India is not
:08:22. > :08:23.
:08:23. > :08:33.matching up to its potential. Europe's top football clubs are
:08:33. > :08:50.
:08:50. > :08:58.being water they need to keep a lid This has not changed, this problem
:08:58. > :09:07.of players' wages. Football has been having fantastic revenue
:09:07. > :09:12.growth. Players share in that the Mac. But it has gone too far. The
:09:12. > :09:22.club needs to take action to restore balance. UEFA is looking to
:09:22. > :09:31.
:09:31. > :09:40.take that action. The objective is to help clubs to help themselves
:09:40. > :09:47.and readjust that balance. How does that work? There is a break even
:09:47. > :09:55.requirement. Clubs will be required to get close to, or break even, in
:09:55. > :10:01.terms of results. They can invest in a youth development. As a
:10:01. > :10:11.business, they have to break even. They cannot rely on a white knight
:10:11. > :10:12.
:10:12. > :10:18.to rescue them all the time. Yes. The benefactor supplying them
:10:18. > :10:28.will... Will that be out of control? It is a positive