:00:14. > :00:18.Russian hacker forum. Now for the latest financial news.
:00:18. > :00:23.Welcome to World Business Report. Ted mac are a test of investor
:00:23. > :00:27.sentiment, Spain looks to raise money on the markets as reports
:00:27. > :00:33.well that Europe is considering financial aid for its banks. --
:00:33. > :00:41.reports swell. The US economy is slowing, they consider whether to
:00:41. > :00:51.pump more cash into its economy. In Asia, shares are falling sharply
:00:51. > :00:53.
:00:53. > :00:57.after revenue targets a cart. -- Irish kart. -- archive. Spain is in
:00:57. > :01:01.the spotlight as it faces an important test of investor
:01:02. > :01:05.sentiment with a bond sale. They are looking to raise 2 billion
:01:05. > :01:11.euros on the financial markets to pay a hefty price to sell the debt
:01:11. > :01:16.with potential buyers. Europe is considering ways in which to rescue
:01:16. > :01:21.the country's banks. The finance minister warns that the door was
:01:21. > :01:25.not open for Spain. Spain insisted it will not make any decision on
:01:25. > :01:30.financial aid after and IMF investigation into the banking
:01:30. > :01:34.sector has been concluded. How did that go down with the financial
:01:34. > :01:41.markets? Let's have a look at the numbers. Hopefully we will get some
:01:41. > :01:48.numbers. Hopefully we will get some animation. The Dow Jones closed on
:01:48. > :01:52.Wednesday looking positive. That is flowing through to other markets.
:01:52. > :01:56.There was some record-breaking Territory. Breaking through to the
:01:56. > :02:05.Brazilian market. Hardly surprising, given the sense that Europe must
:02:05. > :02:10.act now, rather than later. The possibility of quantity of easing.
:02:10. > :02:14.possibility of quantity of easing. possibility of quantity of easing.
:02:14. > :02:18.-- quantity of easing. Let's take a look at the Spanish-born sale.
:02:19. > :02:22.Given that the banking system is very weak and there is talk about
:02:22. > :02:30.it having to take money from the UN di mare, why would people want to
:02:30. > :02:40.buy it? That is the question indeed. They say the country shut out from
:02:40. > :02:42.
:02:42. > :02:46.the bond market. -- from the EU and the IMF. They do not want ongoing
:02:46. > :02:53.supervision. No humiliation or loss of face that other governments had
:02:53. > :02:58.to endure. The current government was on the recently elected and not
:02:58. > :03:04.elected on the platform that they would seek aid. Spain has a problem
:03:04. > :03:09.which she is that the market is pricing its debt at 6.5%, which is
:03:09. > :03:13.not far from the levy which other countries seek to bail-out funds.
:03:13. > :03:18.Today's auction will give us more evidence at how much closer they
:03:18. > :03:22.are made into the threshold. could argue that if the take up his
:03:22. > :03:27.way, that would be humiliating for Spain and potentially forced them
:03:27. > :03:33.to ask for aid whether they like it or not? Indeed, at the moment it is
:03:33. > :03:37.not clear if the current mechanisms to support countries would be in a
:03:37. > :03:42.position to give some money to recapitalise the banks and save the
:03:42. > :03:45.government from an austerity programme. The programmes are not
:03:45. > :03:50.in place and there are grave reservations against that approach.
:03:50. > :03:54.If a way was found to do so, Spain may run out of money in a few
:03:54. > :04:00.months' time despite having recapitalise its banks, the deficit
:04:00. > :04:04.will keep growing. Ireland and Portugal and other countries have
:04:04. > :04:09.faced this. If the Spanish government were able to access the
:04:09. > :04:12.money from the IMF and they agreed to pump the funds backing to the
:04:12. > :04:20.banks, that is hardly fair to other countries which may need those
:04:20. > :04:24.resources. They need 75 billion euros, at the Spanish banks to
:04:24. > :04:29.recapitalise. That could grow over time if the economy continues to
:04:29. > :04:39.slow or stay in recession. Therefore, that is another chunk
:04:39. > :04:47.
:04:47. > :04:52.out of the armour of the 44 billion euros from the eurozone. Thank you
:04:52. > :04:57.for joining us with your analysis. Let's stay with the banking sector,
:04:57. > :05:00.returning the spotlight on the UK, it is back in recession. Also, the
:05:00. > :05:04.US economy is slowing down. The central Bangkok both countries are
:05:04. > :05:14.under pressure to stimulate growth by pumping money into their
:05:14. > :05:15.
:05:15. > :05:23.economies. -- the central banks in. First, the Bank of England's
:05:23. > :05:28.interest-rate meeting. In a rare piece of good news, the
:05:28. > :05:34.manufacturing group reported a resilient moved in factories. The
:05:34. > :05:39.BMW plant in the UK is celebrating building its 300 millionth engine.
:05:39. > :05:43.It trained by 3% last quarter. The question today is whether the Bank
:05:43. > :05:47.of England will stimulate growth by creating money to buy out
:05:47. > :05:52.government bonds. First up, the Bank must decide whether concerns
:05:52. > :05:56.about the British economy now outweigh concerns about inflation.
:05:56. > :06:00.Given that inflation is now falling and the recession is now debarred
:06:00. > :06:06.them we first thought, today could be the day that the Bank announces
:06:07. > :06:10.further stimulus. Those supporting the idea include
:06:10. > :06:19.Christine Lagarde from the IMF. Last month she suggested the Bank
:06:19. > :06:25.of England should look at easing the interest rates. Most economists
:06:25. > :06:29.think that is unlikely. Interest rates and bank rates are at their
:06:30. > :06:34.lowest point. The issue would be if they continue asset purchases with
:06:34. > :06:38.the hope to drive down longer term purchases. There is a chance they
:06:38. > :06:45.will make that move today. Last month, several members of the Bank
:06:45. > :06:49.committee were balanced on the quantity of easing. With rates at
:06:49. > :06:55.rock-bottom, the question is to find any mechanism which is truly
:06:55. > :06:59.effective. Also today, the head of the
:06:59. > :07:02.American central bank would testify to American politicians, like the
:07:02. > :07:08.Bank of England and many investors, they are clamouring for more action
:07:08. > :07:15.to stimulate the economy. In the heart of New York's
:07:15. > :07:19.financial district, investors are watching Washington. They're
:07:19. > :07:23.waiting for the Federal Reserve chairman, looking for queues as to
:07:24. > :07:29.what policy makers would do when they meet later this Mark --
:07:29. > :07:34.looking for clues. The US economy needs a jolt. -- late said this
:07:34. > :07:39.months. The stock markets have had data more to as few weeks and
:07:39. > :07:45.unemployment is higher. The question is what can the government
:07:45. > :07:50.do that they have not done already. They have already had easing. They
:07:50. > :08:00.poured trillions of dollars into the US economy. And a bond buying
:08:00. > :08:01.
:08:01. > :08:08.programme called Operation twist and slated his mark. -- the stock
:08:08. > :08:11.markets have had a tumultuous few weeks. -- later this month. Will it
:08:11. > :08:17.be enough to reinvigorate the US economy?
:08:17. > :08:23.Shares in the Taiwanese smartphone company HDC have fallen after they
:08:23. > :08:33.cut their revenue targets. Take us through those numbers
:08:33. > :08:34.
:08:34. > :08:37.please. Shares are down by as much as 7%.
:08:37. > :08:44.This is the fifth largest smartphone maker from Taiwan. It
:08:44. > :08:49.has become one of very few Asian companies which were posing a
:08:50. > :08:55.threat to the big players such as Apple. From 2010, its sales jumped
:08:55. > :09:00.by four times, its shares also tripled. They started to lose out
:09:00. > :09:10.last year because they could not keep up with the fine Mac or galaxy
:09:10. > :09:11.
:09:11. > :09:15.models from Samsung. -- iPhone. It goes to show how quickly things
:09:15. > :09:20.change in this market where consumers are always on the lookout
:09:20. > :09:28.for something new and different. I guess HDC have not been able to
:09:28. > :09:33.keep up with the bigger rivals such as Apple and Samsung.
:09:33. > :09:37.The head of the Nasdaq has apologised for the Nasdaq Crows
:09:38. > :09:43.Park problems with the share sale of Facebook. -- the Nasdaq's
:09:43. > :09:48.problems. They will give $40 million to clients who lost out