01/06/2012

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:00:13. > :00:17.celebrations. Those are the latest headlines.

:00:17. > :00:23.Welcome to World Business Report. Fears mount about the eurozone and

:00:23. > :00:31.the wider global economy. Four trillion dollars has been erased

:00:31. > :00:35.from global stock markets. Asian stock markets are Stan -- I

:00:35. > :00:42.keeping losses into June. They are stunned by further weakness in

:00:42. > :00:52.China's manufacturing sector. The thoughts turn to the US and the

:00:52. > :00:54.

:00:54. > :00:58.latest employment figures. The recovery is losing momentum.

:00:58. > :01:02.Growing fears over the eurozone crisis and the direction of the

:01:02. > :01:06.broader global economy. It has been the worst month for global stock

:01:07. > :01:12.markets in eight months. Shares around the world were down 10% in

:01:12. > :01:16.May, losing four trillion dollars in value. For the Dow Jones, it was

:01:16. > :01:24.the worst month in two years. Commodities have been even harder

:01:24. > :01:34.hit. Demand for perceived safe havens has hit record levels.

:01:34. > :01:35.

:01:35. > :01:40.June is off to a bad start in Asia. No rest for the weary. Stock market

:01:40. > :01:47.investors in Asia, today there were stunned by more weakness in China's

:01:47. > :01:53.manufacturing sector. The index came in above 48, for the month of

:01:53. > :02:03.May, which is the lowest since March of 2009. Any number below 50

:02:03. > :02:04.

:02:04. > :02:10.indicates a contraction. These numbers are so just the slowdown in

:02:10. > :02:17.the world's number two economy may be worse than expected. -- numbers

:02:18. > :02:22.suggest. All the stock markets are in negative territory. But Hong

:02:22. > :02:26.Kong and mainland China shares are looking resilient. Investors hope

:02:26. > :02:34.that China will launch more action to help its economy. But they were

:02:34. > :02:40.not spend the same amount of money, which is $600 billion, four years

:02:40. > :02:50.ago during the global financial crisis. Emergency -- emerging Asian

:02:50. > :02:55.

:02:55. > :03:01.currencies are also feeling the pressure.

:03:01. > :03:05.I am joined by a market strategist. Is this the turning point for

:03:05. > :03:10.global stock markets? When you look at what is going on, not just in

:03:10. > :03:14.the eurozone, which is where things are dominating, but with the US

:03:15. > :03:19.slowing down, there are numbers out of India that are not looking good.

:03:19. > :03:26.Those countries were the ones that were supposed to save the world.

:03:26. > :03:31.The story out to China about no stimulus has boot to the market. --

:03:31. > :03:36.has frightened. The markets hate uncertainty. You get in negative

:03:36. > :03:40.results. We have got huge uncertainty around the world, the

:03:40. > :03:45.biggest being the eurozone. Nobody knows what the outcome of all the

:03:45. > :03:49.stories are going to be. When we get to June 17th, the issue with

:03:49. > :03:53.the Greek election, we probably still will not know. There is no

:03:53. > :04:00.surprise that the markets are not finding anything positive to grab

:04:00. > :04:05.onto. To the problem stemmed -- stem from the eurozone? If there

:04:05. > :04:10.could be some kind of stop to the crisis, you will see markets

:04:10. > :04:15.stabilise? Yes, but what we have also seen, the markets become numb

:04:15. > :04:21.to a lot of the stories. There is so much going on about Greece and

:04:21. > :04:26.Spain, we have been talking about to -- about it for two years, and

:04:26. > :04:30.when the stories come out, there is not too much of a market reaction.

:04:30. > :04:36.But when you get all the news coming together, negativity from

:04:36. > :04:46.the US... this is the first concrete sign that diggers and

:04:46. > :04:46.

:04:46. > :04:50.crisis appears to be affecting eurozone crisis. The US recovered

:04:50. > :04:56.and managed to ignore the eurozone. But now it is having a knock on

:04:57. > :05:03.effect. It is a global problem again, not a eurozone problem.

:05:03. > :05:08.Global investors will be looking to the US on Friday within the short -

:05:08. > :05:11.- with offi - with offioyment figures for May. April was the weakest

:05:11. > :05:15.month for job creation in six months. Estimates for the US

:05:15. > :05:20.economic growth in the first three months of the year were downgraded.

:05:20. > :05:27.We have been speaking to graduates in York to find out where their day

:05:27. > :05:32.job prospects are any better now. - - in New York.

:05:32. > :05:36.The air was filled with optimism at his graduation ceremony at Queen's

:05:36. > :05:42.College New York. Something that was in short supply when the

:05:42. > :05:46.Then, 2008. Then, the housing bubble had burst,

:05:46. > :05:55.the men bro the men bro collapsed, and there were few jobs available.

:05:55. > :05:58.Lehman Brothers. I was positive, I kept the positive attitude. I know

:05:58. > :06:05.that I would be in school when the worst of the crisis was happening,

:06:05. > :06:10.school right when things started getting better. I believe that is

:06:10. > :06:15.the case. T the case. T starting to improve a little bit. Once a

:06:15. > :06:21.college education guarantee to a well-paid job. It is not so today.

:06:21. > :06:27.He still cannot find full-time employment. I was looking for a

:06:27. > :06:30.full-time job. But seeing how the job market is, and see how you can

:06:30. > :06:37.work your at way up or two part- time jobs, it makes the

:06:37. > :06:41.opportunities unfold for you, and get you into the business.

:06:41. > :06:45.recession's impact on recent graduates is not immediately

:06:45. > :06:51.confined it to their recent job prospects. It can also affect their

:06:51. > :06:57.future earning power. When you enter the labour market at a lower

:06:57. > :07:02.wage, it is difficult to ever catch up, because your labour market

:07:02. > :07:06.history, as we call it, follows you around. So unless you change job

:07:07. > :07:14.and you get a huge promotion, you are not necessarily going to catch

:07:14. > :07:20.the ball restarted at a higher level. -- catch the people who

:07:20. > :07:25.started. America's unemployment rate remains above normal, at 8%.

:07:25. > :07:35.The ceremony is over, but for the graduating class of 2012, the

:07:35. > :07:36.

:07:36. > :07:40.challenge of finding a job in a tough economy has only just begun.

:07:40. > :07:44.The Russian President will visit Berlin and Paris on his first

:07:44. > :07:48.foreign tour since returning to office for a third term. Syria will

:07:48. > :07:52.top the agenda with Russia under pressure to drop support for the

:07:52. > :07:58.regime, but the crisis in the eurozone is also a major worry for

:07:58. > :08:04.the Russians. The EU is its number one oil market and also its top

:08:04. > :08:09.trading partner. I suspect there will be a battle as

:08:09. > :08:14.to what will top the agenda. The Russians are looking for a very

:08:14. > :08:20.different agenda than the Europeans. That a reputable prefer to discuss

:08:20. > :08:26.business interests, Moseley energy issues. -- and Vladimir Putin. But

:08:26. > :08:35.it is likely that the Syrian crisis will dominate the agenda. Is it

:08:35. > :08:42.likely that one will influence the other? When it comes to business

:08:42. > :08:52.interests and energy issues, he tries to continue with his message,

:08:52. > :08:54.

:08:54. > :09:02.that he values Germany and France, and that he would probably tried to

:09:02. > :09:09.degrade the Syrian issue to a wider geographical context. He will

:09:09. > :09:15.probably steered the conversation to the eurozone crisis. Especially

:09:15. > :09:21.in the light of the developments in a new project. AB we have learnt,

:09:21. > :09:26.this alternative gas pipeline has been shut off. It was supposed to

:09:26. > :09:31.diversified the EU's energy input, and to bring non Russian gas into

:09:31. > :09:38.it. But it has been shut off. It means that Russia's position has