20/06/2012

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:00:05. > :00:15.tackling its debt crisis. Those are the latest headlines. -- priest.

:00:15. > :00:18.

:00:18. > :00:24.Time for more financial news in Hello and a warm welcome. The

:00:24. > :00:30.headlines: At the G20 meeting in Mexico, European leaders tried to

:00:30. > :00:34.reassure the rest of the world they can fix the debt crisis. We will

:00:34. > :00:40.find out today at the US Federal Reserve is planning another boost

:00:41. > :00:46.for the World's largest economy. I am Rico Hizon in Singapore. A major

:00:46. > :00:56.media deal is happening in this really good. News Limited makes a 2

:00:56. > :01:00.

:01:00. > :01:06.billion dollar takeover bid for Good to have you with us. At the

:01:06. > :01:15.G20 meeting in Mexico, Euros will leaders did their best to ensure

:01:15. > :01:20.other countries that they were coping that the crisis. -- eurozone.

:01:20. > :01:26.Francois Hollande also said the bidders would discuss using the

:01:26. > :01:31.bail-out fund to buy up debt from struggling nations. -- leaders. Our

:01:31. > :01:36.correspondent has more. What those attending the summit, the risks

:01:36. > :01:41.were clear. Failure to deal with the debt crisis could push the

:01:41. > :01:46.global economy back into recession. It would be the second in four

:01:46. > :01:49.years. It would add to the pressure on European leaders. Spain is

:01:49. > :01:58.finding it increasingly difficult to persuade investors to back its

:01:58. > :02:05.debt. By Tuesday, it had to raise for the money. Given how high the

:02:05. > :02:13.stakes are, what was achieved? -- For the Money. Are we any closer to

:02:13. > :02:17.moving towards integration of the banking system? After the summit,

:02:17. > :02:21.Barack Obama said that the single currency union was one that had

:02:21. > :02:25.been set up without the necessary bells and whistles but this problem

:02:26. > :02:30.was being addressed. European leaders are also apparently

:02:30. > :02:35.considering buying up the debt of other distressed European countries.

:02:35. > :02:41.If true, this would be a change in position for Germany. Apparently

:02:41. > :02:47.Italy suggested the use of the rescue fund and France's Francois

:02:47. > :02:56.Hollande said that this was an idea worth exploring. No doubt we will

:02:56. > :03:00.hear more about this later. There has been growing optimism on the

:03:00. > :03:05.financial markets that the US Federal Reserve might take action

:03:05. > :03:11.to boost the EU economy. We will find out if that optimism is

:03:11. > :03:19.justified later today. There is certainly concern in the United

:03:19. > :03:25.States about flagging growth and high unemployment levels. Our

:03:25. > :03:30.correspondent reports from Washington. The Bank of the central

:03:30. > :03:34.bank does not look like a knight in shining armour. Many in the markets

:03:34. > :03:41.are counting on him to write to the rescue of the struggling economy.

:03:41. > :03:50.That's right. The US jobs market is weak. Industrial production is down.

:03:50. > :03:55.The debt crisis is casting a long shadow. Experts remain divided on

:03:55. > :04:00.whether the situation has got a bad enough to close the central bank to

:04:00. > :04:07.intervene with new stimulus measures. Some believe that policy

:04:07. > :04:12.makers are boarded enough to act now. I think they can sense anxiety.

:04:12. > :04:22.I think they know that the economy has been weaker than what they

:04:22. > :04:30.forecast three years in a row. That is unprecedented. I think they are

:04:30. > :04:39.wondering what else they can do. Can they do it? What are the

:04:39. > :04:46.politics? The most likely option is extending the current programme. It

:04:46. > :04:50.is intended to lower long-term interest rates. A decision about

:04:50. > :04:57.what action to take will be known at the end of the meeting with the

:04:57. > :05:03.policy makers. All eyes are on the Federal Reserve, the central bank.

:05:03. > :05:08.Republicans in Congress sate it has already done too much. Markets are

:05:08. > :05:18.seeing it has not done enough. Amid all these competing pressures, the

:05:18. > :05:22.Federal Reserve will have to decide which way it jumps later today.

:05:22. > :05:28.Rupert Murdoch's plan to expand News Corp in the UK has been

:05:28. > :05:34.frustrated by the phone tapping scandal. He is expected to expand

:05:34. > :05:42.elsewhere. There is a deal underway in Australia. Rico Hizon has more

:05:42. > :05:48.details. What is he up to? He wants to expand his media footprint in

:05:48. > :05:54.Australia. The Australian arm of News Corp has made a 2 billion

:05:54. > :06:04.dollar offer for a full takeover of Has alluded Nadir Holdings which is

:06:04. > :06:05.

:06:05. > :06:10.owned by James Packard. -- Consolidated Media Holdings. This

:06:10. > :06:17.would give them a large amount of control over paid television. James

:06:18. > :06:27.Packard has said he will support the move. Breaking a den, --

:06:28. > :06:30.

:06:30. > :06:37.50 % stake in Fox boards. News Corp holds a share. Fox Sports is a 50-

:06:37. > :06:41.50 partnership. According to analysts, the move to unload the

:06:41. > :06:48.media business means that James Packard and refocus his resources

:06:48. > :06:58.in casinos. He is a billionaire. He has stakes in casinos in London and

:06:58. > :06:58.

:06:58. > :07:06.Las Vegas are amongst other places. The News Corp board must approve

:07:06. > :07:10.this. This would be a major deal for them. We will keep an eye on

:07:10. > :07:14.that story. You would think that the debt crisis would put anyone

:07:14. > :07:20.off investing in the eurozone. Investment from overseas into the

:07:20. > :07:26.region last year, according to Ernst and Young, went up. The

:07:26. > :07:31.results of their story showed 4,000 projects were funded by overseas

:07:31. > :07:36.funds in 2011. That is an increase of two percent on the year before.

:07:36. > :07:42.The US is the biggest investor, with more than 1,000 schemes. We

:07:42. > :07:49.can speak to the head of Ernst and Young's advisory service now. He

:07:49. > :07:55.wrote this support for us. Thank you for being in the programme. --

:07:56. > :08:02.on the programme. Investment is on the rise, why? Despite the doom and

:08:02. > :08:09.gloom and a crisis, there is a confidence in you that's ability in

:08:09. > :08:19.the long term to sustain growth and largest economy in the world. The

:08:19. > :08:26.

:08:26. > :08:32.two percent of the wealth is there. Investors like that. They do not

:08:32. > :08:37.ignore the crisis. And these are individuals, organisations who are

:08:37. > :08:42.investing for a long period of time. The US is a big investor. Where

:08:42. > :08:48.else is investment coming from? Emerging markets are not only

:08:48. > :08:52.critical as markets. They are the source of many other factors.

:08:52. > :08:58.Investment projects have been increased by 22 % by the Chinese.

:08:58. > :09:06.They are investing in large numbers in the UK, Germany, France and

:09:06. > :09:12.southern Europe. They want to establish a long-term presence,

:09:12. > :09:19.acquired brands, acquire technology. They want to boost their domestic

:09:19. > :09:26.brand. brand. That is encouraging to here.

:09:26. > :09:32.Thank you. That is encouraging, isn't it? Let's look at the markets.

:09:32. > :09:36.Behind me, you can see gains across the board. A lot of this is in

:09:36. > :09:42.anticipation that the Federal Reserve may take further action to