:00:02. > :00:12.motivated. You are or up to date. Now it is
:00:12. > :00:16.
:00:16. > :00:24.time for the financial news. It is time for World Business Report.
:00:24. > :00:29.The headlines: More pain for Spain. Moody's downgrades 28 banks.
:00:29. > :00:39.To pan's Prime Minister faces a rebellion over his plan to double
:00:39. > :00:43.sales tax. -- of Japan's. The problems continued to pile up
:00:43. > :00:48.for the eurozone. The creditworthiness of 28 Spanish
:00:48. > :00:52.banks was downgraded by Moody's. It says Spanish banks are vulnerable
:00:52. > :00:57.to losses on their property loans and said that the government will
:00:57. > :00:59.struggle to help them out as its finances are in a bad state.
:00:59. > :01:04.Santander was among those downgraded but its rating still
:01:04. > :01:08.remains above the Spanish government's. A fifth European
:01:08. > :01:13.nation has approached Brussels for finding. This time it is Cyprus,
:01:13. > :01:16.which analysts think will need between 5 and 10 billion euros.
:01:16. > :01:20.And Greece is in search for a new finance minister after Vassilis
:01:20. > :01:24.Rapanos resigned due to health reasons. That could hold up
:01:24. > :01:31.negotiations over the terms of the Greek bail-out. Jeremy Stretch is a
:01:31. > :01:38.market strategist at CIBC Markets. Good morning. It is just 24 hours
:01:38. > :01:46.of information there. Let's start with Spain. The downgrading of the
:01:46. > :01:51.banks and the concern by Moody's. What about the bail-out? Spain have
:01:51. > :01:55.only just formally requested the banking bail-out. But we don't know
:01:55. > :02:03.any details as to how that will work. We do not know how much Spain
:02:03. > :02:08.will request. We had those audits of the banking system last week.
:02:08. > :02:12.But as the property loans continued to go bad that number will continue
:02:12. > :02:17.to go up. That is probably one of the reasons Moody's are
:02:17. > :02:24.particularly concerned about the banking sector in Spain. As far as
:02:25. > :02:29.the other news that I mentioned there, in terms of Greece and their
:02:29. > :02:37.situation, it is not looking particularly good, when you have
:02:37. > :02:42.not got the Prime Minister available, or the finance -- or the
:02:42. > :02:48.finance minister. Yes. It would almost be funny and ironic if it
:02:48. > :02:56.was not so serious. Both of them are not able to attend the EU
:02:56. > :03:00.summit this week. The whole process in terms of the bail-out, or
:03:00. > :03:10.renegotiations, are being delayed. One thing the eurozone does not
:03:10. > :03:12.
:03:12. > :03:19.have a lot of time -- a lot of his time. Angela Merkel was speaking in
:03:19. > :03:23.Berlin yesterday. She has clearly set no to the idea of debt sharing.
:03:23. > :03:29.That is right. On the one side we have a number of nations same, what
:03:29. > :03:34.we require is some kind of debt neutralisation across Europe to
:03:34. > :03:38.share the pain. And on the other side you have Germany, who will be
:03:38. > :03:43.the paymaster for the majority of that. They are saying, as it stands,
:03:43. > :03:47.we're not in a position to do that. Markets are thinking ahead of this
:03:47. > :03:56.EU summit at the end of the week. Very low expectations, I imagine.
:03:56. > :04:03.Indeed. The level of expectation is so low that you can almost step
:04:03. > :04:07.over the bar. That is about as positive as we can get. Thank you.
:04:07. > :04:11.We'll keep you up-to-date. Let's move on to Japan. Lawmakers there
:04:11. > :04:15.are voting on a bill that would double the nation's sales tax to
:04:15. > :04:20.10%. It is a controversial move that dozens of members of the
:04:20. > :04:28.ruling party are likely to vote against. Our correspondent is in
:04:28. > :04:32.Tokyo. Tell us about this boat today. What is the latest? -- vote.
:04:32. > :04:38.They will start voting in about one hour in the lower house of
:04:38. > :04:44.parliament. The bill is expected to pass. The ruling Party of Japan has
:04:44. > :04:50.managed to reach a deal with its two main opposition parties. So it
:04:50. > :04:58.is likely to pass. But as you say, 50-60 possibly lawmakers from the
:04:58. > :05:05.ruling party have already said that they might vote against it. It is
:05:05. > :05:12.not clear what they will do, whether they will be even show up,
:05:12. > :05:16.or whether they will vote against it. But the leader has indicated he
:05:16. > :05:22.might form a new party. If that happens it will be a huge blow.
:05:22. > :05:30.This is critical. If this vote goes against the government, what will
:05:30. > :05:36.it mean for the Prime Minister? would mean that the ruling party
:05:36. > :05:46.will have significantly less power. But the Prime Minister seems very
:05:46. > :05:47.
:05:47. > :05:57.committed to make this bill passed after the lower house -- past. He
:05:57. > :05:59.
:05:59. > :06:03.keeps saying it is needed to tackle the huge debt. Thank you very much..
:06:03. > :06:07.News Corp is considering splitting into two companies according to the
:06:07. > :06:10.Wall Street Journal, which is one of News Corp's newspapers. One
:06:10. > :06:14.company would control the movie studios and television channels and
:06:14. > :06:19.the other would look after newspapers, book publishing and the
:06:19. > :06:21.education business. According to this report News Corp chairman
:06:22. > :06:26.Rupert Murdoch has recently come around to the idea after initially
:06:26. > :06:29.opposing it. of Nissan, was paid almost 1
:06:29. > :06:32.billion yen, nearly $13 million, for his work over the past
:06:32. > :06:37.financial year. He disclosed his pay at the company's annual general
:06:37. > :06:41.meeting. That makes him Japan's best-paid executive.
:06:41. > :06:48.Microsoft is buying Yammer for $1.2 billion. Yammer provides private
:06:48. > :06:51.social networks for companies. Microsoft says that it wants Yammer
:06:51. > :06:55.to be seen as part of its Office business software. Yammer will
:06:55. > :06:58.continue to be run from its headquarters in San Francisco.
:06:58. > :07:03.tumbled tumbled almost 8% on Monday to hit
:07:03. > :07:05.a 9-year low. It follows a negative report from Morgan Stanley. It said
:07:05. > :07:13.that the BlackBerry phones are ageing and that the new BlackBerry
:07:13. > :07:18.10 software is unlikely to be a hit. It is becoming a race against time
:07:18. > :07:22.for Italy's third-largest bank, Monte dei Paschi di Siena. Today, a
:07:22. > :07:28.delayed meeting of the bank's board is due to approve a new business
:07:28. > :07:38.plan. MPS, as it's known in Italy, urgently needs to find a billion
:07:38. > :07:42.
:07:42. > :07:48.euros to fill a capital shortfall. world's oldest bank. But to ensure
:07:48. > :07:52.it stays around it needs more than a new management plan. Supreme
:07:52. > :07:58.efforts have climbed two-thirds of a 3 billion euros black hole
:07:58. > :08:04.identified it -- identified by help.tside
:08:04. > :08:08.help. -- have failed. Wended markets can probably not help
:08:08. > :08:15.because they are up to expensive. This could become the first Italian
:08:15. > :08:19.bank to resort to some form of The markets here reckon the Bank
:08:19. > :08:24.and other Italian banks are far less exposed to those of Spain
:08:24. > :08:30.which have beak investments in the commercial property market. But M
:08:30. > :08:34.Italian government bernment b say the Italian state being asked
:08:34. > :08:39.to support a bank it already relies on itself. But investors in a
:08:39. > :08:44.solution will be found. I think that they will keep going. They are
:08:44. > :08:48.the third largest bank in Italy. They will undoubtedly sell assets.
:08:48. > :08:51.They will go to the government who will then buy a get off them
:08:51. > :08:56.through a secondary agency which means that they can continue but
:08:56. > :08:59.they will have to pay a high coupon for that. I also think they will be
:08:59. > :09:02.bailed out was certain degree by the fact they have Italian
:09:02. > :09:05.government bonds to be redeemed in the next couple of years, which
:09:05. > :09:10.will give them some respite from the pressure they are under current
:09:10. > :09:17.be. The hope is that talks with the Treasury and the Bank of Italy will
:09:17. > :09:25.bear fruit. But the state will want to minimise any addition to its
:09:25. > :09:30.already public debt. We're seeing losses across the
:09:30. > :09:35.board on markets, not significant, but falls across the board. HSBC
:09:35. > :09:39.finally came out with its lower growth forecast for China, to 8.4%
:09:39. > :09:43.this year. The Bank of Korea's sentiment index has that to a