18/06/2012 World Business Report

defeated Michael Johnson by one shot.

Those are the latest headlines. Now for the latest financial news.

Welcome to World Business Report. The headlines: Investors worldwide

breathe a sigh of relief as the leading broker bail-out party in

Greece wins the election. -- pro- one-month high.

The eurozone crisis is far from over - it is expected to dominate

the G20 in Mexico. Share markets in Asia are rallying.

The euro is rising against most major currencies and safe havens

such as gold are falling. This is the immediate reaction to news that

Greece's centre-right party has won the election in Greece. The party

edged ahead of its leading leftist opponent and will now seek

coalition partners to form a new government. This is the result that

European leaders were hoping for, but with many Greek voters calling

for a breakaway from the severe austerity measures imposed, the new

government will be attempting to be sure some easing of the bail-out

conditions. In a moment we will go to Greece to talk about what is at

stake, but now let's go to Singapore.

Well, Asian investors were on edge over the weekend. They were waiting

and watching what will happen with the Greek elections. Now we are

seeing a relief rally for the Asian markets as a result of the Greek

polls. There were fears that the country would stop using the euro

currency. This positive vote is set to rub off on Wall Street. The

average on futures is up by 62 points, suggesting the market could

open higher later today. Now we will look at the major indices -

Tokyo, Hong Kong, Singapore, Australia, all in the plus column

by 1-2 %. Car manufacturers shipyards, steel makers and

commodities. This is still not enough to

overcome the loss of key markets this year due to the uncertainty

about Greece and its eurozone membership. Japan led the fall this

year with an 80% drop. South Korean shares have dropped and Hong Kong

is down by 11%. Still a lot of ground to make up despite an

optimistic day. The overall sentiment is still one of caution.

Thank you for that update on how Asia is reacting. Now let's talk to

a professor of economics at Aristotle University. Thanks for

joining the us this morning. Good morning. Let's start with the

coalition government. Tel us who will form the government. I think

Greek people have understood very well that the economic and social

problems of Greece are so intense that no-one government, a one-party

government, could resolve them. The order of the people is clear -

please form a coalition government to solve the problems.

This government should be the framework of the European Union -

the eurozone. I think that in the near future we will have a

government formed by the New Democracy Party, the Socialist

Party and a Democratic Left Party, which is a social democratic party.

How strong will this government be? These are politicians who are not

used to working together and so Reza has said they will remain in

opposition. -- Syriza. My opinion is that that party as two ways they

can follow. First of all they could become - they could move to the

centre to gain the next elections, they could become more socially

democratic to cover the space of Pasok. Or they could remain more

radical and go back to the small percentage as they used to have in

previous years. The Greek political history says a lot about that. I

think that in strategic terms, the party would be a more serious

opposition, a more at European-type opposition party. I am optimistic

about that. Briefly, tell us what the new government hopes to achieve

first. We presume they will be asking for the easing of austerity

measures put in place by its creditors. I think the new

government should ask for more time for the fiscal adjustment of Greece.

However, the new government should proceed more rapidly towards

economic reforms brought the Great Society. I think the first move, --

reforms for the Greek society. I think at first they should sell the

Hellenic railways to give a sign that we are finally trying to

adjust our economy to become more modern. Thank you very much for

joining us. We also had the senior foreign

exchange strategist from rather bank. -- RaboBank.... You must

consider the headline news with respect to the bail-out that needs

to be forged now for Greece. The uncertainties are so huge that no-

one at this point that can be certain that his government can

sustain. That is one problem. The next problem is, assuming we get a

workable government, Greece still has to work out how the bail-out

will work for the Greek people. We don't know how long that will take

and what exactly will happen. Even if we had a smooth run with

government, which perhaps is too much to ask, you still have the

problems with respect to Spain. That is not going to go away very

quickly. Spain, maybe Italy - they will be extremely topical during

the summer months and maybe beyond. Yes, this is a better result than

perhaps could have been feared, but it is not the end of the problems.

All right, we will talk to you some more in more detail later when we

look at today's newspapers about this story. Thank you for your

comments now. Jane will be back, because all the papers are covering

the results for Greece. Not just Greece, but the results for France

with the parliamentary elections there. A lot more later. Let's move

on - we have to squeeze in other stories.

For political and business leaders are starting a two-day meeting in

Mexico. Needless to say, the summit comes at a crucial time. We have

more from Mexico. Security guards outnumbered

holidaymakers at this resort in Mexico as world leaders started

arriving for the G20 summit. There has to be co-ordination. Before the

Greek election results came in, one of the key players in the global

economy, Christine Large, the head of the International Monetary Fund,

-- Christine mudguard. If I can make a suggestion to the G20

leaders and those who represent the private sector - be as blunt as you

can with the G20 leaders. One of those listening was from the

International Chamber of Commerce. He is most concerned about the lack

of economic growth. We all joined, joined by trade, investment, all

kinds of interests. Yet we have no tools out there to manage a

globalised economy. One of the biggest challenges is how to create

jobs. With over 75 million young people out of work worldwide,

students at this school are nervous about the future. There is a lot of

competition, so I think it will be hard. Hard to find a job.

TRANSLATION:... This businessman runs a company who makes windows.

He was forced to lay off half of his staff. Now he wants leaders in

his home town to set aside national interests and work together.

believe they need to be open and almost to what the solution is.

Everybody has to be less - forget your egos, forget your powers.

the next two days, this is where the meetings will take place. When

leaders arrive, they will face questions about what actions they