:00:19. > :00:27.temporary ceasefire. The headlines: Another boost for
:00:27. > :00:30.the US economy as the third lowest interest rates.
:00:30. > :00:36.The test for Spain as it sells debt and finds out what looks in its
:00:36. > :00:46.banking sector. Any private sector survey shows a
:00:46. > :00:52.
:00:52. > :00:56.slow in China's economy. The US Federal Reserve is giving
:00:56. > :01:00.the flagging US economy another push. It is extending a programme
:01:00. > :01:05.called Operation twist which aims to keep a long-term borrowing costs
:01:05. > :01:12.also was possible. It is hoped that will encourage businesses to borrow
:01:12. > :01:17.and invest and create jobs. Like they did last summer, as the
:01:17. > :01:22.sun goes. The Federal Reserve is deciding to twist again. At the end
:01:22. > :01:25.of a two-day meeting in Washington, American central bankers have
:01:25. > :01:30.decided that the economy has got sufficiently worse that something
:01:30. > :01:36.more needs to be done. They have extended a programme known as
:01:36. > :01:42.Operation twist, which involves keeping long-term interest rates
:01:42. > :01:47.low by applying additional bonds. The chairman of the Federal Reserve
:01:47. > :01:55.said at a news conference that if need be, they would take more
:01:55. > :01:59.action. We have taken a step today which will provide additional
:01:59. > :02:09.accommodation for the economy, and we have stated we are prepared to
:02:09. > :02:14.take further steps if necessary. We are prepared to do what is
:02:14. > :02:18.necessary. We are prepared to provide support for the economy.
:02:18. > :02:23.Investors had been hoping for a stronger message -- stronger
:02:23. > :02:33.measures, such as quantitative easing. But clearly the Fed wants
:02:33. > :02:34.
:02:34. > :02:39.to keep some ammunition in reasons. He was at said the Federal Reserve
:02:39. > :02:43.building in Washington. There has been further evidence to do have
:02:43. > :02:47.this learning Chinese economy. A closely watched index of factory
:02:47. > :02:57.activity has fallen for the eight months in a row. Our correspondent
:02:57. > :03:01.
:03:01. > :03:06.has more. This is a story we don't want to hear.
:03:06. > :03:10.Yes, he to SBC's Purchasing managers' Index revealed expect
:03:10. > :03:16.orders and prices turning in their weakest showing since the early
:03:16. > :03:22.2009. It came in at 48.1 in the month of June. This is a seven-
:03:22. > :03:27.month low. A reading below 50 is a contraction. With external
:03:27. > :03:32.headwinds remaining strong, exports are likely to decelerate. The sharp
:03:32. > :03:35.fall prices and moderation of new orders suggests a weak domestic
:03:35. > :03:42.demand which poses more pressure for Chinese manufacturers going for
:03:42. > :03:49.it. The latest Economist stress to push China to further boost its
:03:49. > :03:56.economy after cutting interest rates are leaders month.
:03:56. > :04:00.Will prices are on the move. Taylor is more about that.
:04:00. > :04:08.Oriel prices continued to head south, falling to levels not seen
:04:08. > :04:18.in 18 months. Crude is trading below $92 per barrel. Prices are
:04:18. > :04:19.
:04:19. > :04:26.being pressured by an unexpected rise in supply. US group Oriel
:04:26. > :04:30.stockpiles a lasting last week. The final forecast is for a 1.1 million
:04:30. > :04:35.barrel decline. Analysts say this rising supplies situation is
:04:35. > :04:41.indication that less Americans are driving cross-country. They are
:04:41. > :04:47.receiving, and the US economic recovery is anaemic.
:04:47. > :04:52.There is plenty to watch out for today in Europe with the East debt
:04:52. > :04:56.crisis continues to strict -- stress leaders. It will be a test
:04:56. > :04:59.of confidence in Spain which has been flagging recently as investors
:05:00. > :05:04.wonder if the government can continue to finance his debts.
:05:04. > :05:08.There will find out how bad the situation is for the banks.
:05:08. > :05:16.Independent reports will be submitted to the government. It is
:05:16. > :05:20.not clear if they will release the details. We will get the latest
:05:20. > :05:29.snapshot of how European manufacturing is faring. A busy
:05:29. > :05:38.agenda. Our correspondent has more. They will be a lot of interest,
:05:38. > :05:42.went there, in the various stories I have just mentioned? Yes, a very
:05:42. > :05:47.interesting day in Spain. The first thing to do is to talk about the
:05:47. > :05:55.Spanish auction. It is a very small auction. Because the market has
:05:55. > :06:02.rallied so strongly, because some of the rumours of good news, we are
:06:02. > :06:09.not worried about the auction. The stress tests will be more thorough
:06:09. > :06:14.and almost. The two American firms running the stress test have very
:06:14. > :06:19.strong reputations. There will be looking to return -- protect that.
:06:19. > :06:25.If more things Stewart later, they will have reputation will damage.
:06:25. > :06:33.It should be a good case. Some are saying the Blackhall could be 70
:06:33. > :06:41.billion euros. I think it is bigger than that. 180 billion euros I
:06:41. > :06:46.think. If that is the case, the 100 billion euros would not cut it.
:06:46. > :06:53.Well, that is only the money that the banks will require immediately.
:06:53. > :06:59.You have got to look at this in the long-term prospects. But we still
:06:59. > :07:05.have a declining property market. That is where the bulk of the
:07:05. > :07:09.problem assets are. That hasn't finished yet. As long as Europe and
:07:09. > :07:14.Spain remain my it in a recession, we could see the scale of these
:07:14. > :07:22.asset bubbles continue to get worse. That is one of the things these
:07:22. > :07:27.reports will highlight. When you say it could go better because of
:07:27. > :07:33.the various rumours that have come from G20, what do you feel the key
:07:33. > :07:38.room is? The talk at the European stability mechanism might be able
:07:38. > :07:43.to buy bonds are directly back? Angela Merkel denied that quite
:07:43. > :07:49.strongly yesterday. She said it was the heretical. That is her speak
:07:49. > :07:56.for is not going to happen. We will see something happen. The pressure
:07:56. > :08:02.is such now that we really do need to see some kind of movement. If it
:08:02. > :08:09.is the bail-out funds being allowed to invest directly, or simply
:08:09. > :08:17.renewed buying, we're not certain. We will watch this space. Thank you
:08:17. > :08:23.very much. Jaguar has performed well in a
:08:23. > :08:28.closely watched survey of car quality. In a latest survey of US
:08:28. > :08:33.customers, Jaguar was the most improved luxury brand, jumping from
:08:33. > :08:37.20th to second. That is next to a new model. Dinner will Motors had
:08:37. > :08:46.its best ever performance. The Cadillac and Chevrolet have
:08:46. > :08:49.improved reliability. The Crown Estate made �240 million in the 12
:08:49. > :08:55.months until the end of March. But there was strong demand for shops
:08:55. > :09:03.on Regent Street and son James. The Crown Estate also owns the wind
:09:03. > :09:11.farms and homes. America's third richest man has bought and Hawaii
:09:11. > :09:21.Ireland. The price was not disclosed. It is reportedly more
:09:21. > :09:22.
:09:22. > :09:28.than $500,000 -- $500 million. Starbucks group's three pinnate he
:09:28. > :09:35.by in its own home town of Seattle. The new store will sell more than a
:09:35. > :09:40.key types of loose-leaf tea. The markets today are being influenced
:09:40. > :09:44.pole the stories we have mentioned so far. The roses are available at