:00:16. > :00:19.each other. Now for World Business Report. Europe's economic slump set
:00:19. > :00:29.to deepen over the next six months, warn consultants Ernst and Young,
:00:29. > :00:33.
:00:33. > :00:36.as the region's leaders prepare for Shares rise on economic data from
:00:36. > :00:41.the US. BlackBerry maker Research in Motion to reveal another
:00:41. > :00:51.disastrous quarter. Can it turn the business around before it runs out
:00:51. > :00:54.
:00:54. > :00:58.As you've been hearing - European leaders are in Brussels once again
:00:58. > :01:01.today to try and put a lid on the region's debt crisis. It's the 19th
:01:01. > :01:07.summit since the crisis blew up more than two years ago - and
:01:07. > :01:10.expectations on financial markets are low. With Spain and Italy
:01:10. > :01:12.making increasingly desperate pleas for action to reduce their soaring
:01:12. > :01:22.borrowing costs as investor confidence in them wanes - all eyes
:01:22. > :01:25.are on German chancellor Angela Merkel. She has made it clear once
:01:25. > :01:28.again that Germany is not prepared to guarantee the debts of other
:01:28. > :01:31.countries without deep reforms to the way Europe is run. Adding to
:01:31. > :01:34.the debate this morning - an influential forecast by consultants
:01:34. > :01:41.Ernst and Young warns the Euro area's economy is likely to get
:01:41. > :01:46.worse for the rest of the year - contracting by some 0.6%. Next year
:01:46. > :01:49.only an anaemic return to growth can be expected. They also warn
:01:49. > :01:59.this is the best case scenario, assuming Spain and Italy don't run
:01:59. > :02:00.
:02:01. > :02:06.into serious financial trouble. And we have the senior economic adviser
:02:06. > :02:13.from Burneston young. It does not sound optimistic at all. Tell us
:02:13. > :02:16.about your prognosis? It's a fairly bleak outlook. We think in the
:02:17. > :02:24.third quarter we may see a contraction in activity. We have
:02:24. > :02:28.fiscal austerity biting strongly and we have high doubts about the
:02:28. > :02:34.eurozone. It's difficult for households to invest will spend it
:02:34. > :02:39.for higher. Economic activity is likely to go down. Why were we see
:02:39. > :02:45.anaemic growth next year. Many believe that next year baby another
:02:45. > :02:50.recession if not worse? We assume it and hope that action will be
:02:50. > :02:55.taken. Action by the governments that the sum it like today and
:02:55. > :03:00.tomorrow and subsequently following on that to bring stability and
:03:00. > :03:05.visibility. We don't expect all of the details to be agreed upon today
:03:05. > :03:13.and tomorrow that at least there is a road map and some direction for
:03:13. > :03:23.the eurozone. Then we hope that they will stabilise the economy by
:03:23. > :03:26.
:03:26. > :03:32.next week. Made in purchasing more government bonds. He believed they
:03:32. > :03:37.hold all the cards to help the eurozone? E the ECB holds the cards
:03:37. > :03:42.for the short-term. They can act very quickly. The Government needs
:03:42. > :03:47.time to agree upon things. There are political hurdles. They have
:03:47. > :03:55.the tools at their disposal to stem this crisis not for long-term. They
:03:55. > :04:03.cannot solve the problems but it is they can stem at the short-term.
:04:03. > :04:08.will keep you posted on that summit in Brussels. There are pre-summit
:04:08. > :04:13.nerves Wayne on the Asian markets. But some good news is helping
:04:13. > :04:22.investors. We don't out to Singapore. Tell us about the
:04:22. > :04:26.trading sessions there? It's been going relatively well. Most Asian
:04:26. > :04:32.stocks are high out extending the gains from yesterday. That's mainly
:04:32. > :04:39.due to be at encouraging news from the USA with durable goods orders
:04:39. > :04:44.higher and the business spending rising alongside home sales giving
:04:44. > :04:50.investors here more confidence. The US remains that Asian largest
:04:50. > :04:56.trading partner. Relatively good news within Asia. Japanese retail
:04:56. > :05:01.sales beat the expectations by rising over 3%. Private consumption
:05:01. > :05:07.is one of the main contributions to the Japanese economy. The south
:05:07. > :05:17.Korean surplus has widened to a six-month high. In Malaysia we saw
:05:17. > :05:18.
:05:18. > :05:23.a successful debut of a palm oil company, Felda, rising 20%. It
:05:23. > :05:28.raised over $3 billion, second only to Facebook. That has offset the
:05:29. > :05:35.worries you spoke about at the summit. And they may not yield any
:05:35. > :05:39.results. Investors are still watching that with concerns at
:05:39. > :05:49.these against may evaporate. We see Australia in negative territory
:05:49. > :05:51.
:05:51. > :06:01.today. Possibly because of that, have an impact in Asia and we may
:06:01. > :06:04.
:06:04. > :06:07.see a different picture of trading tomorrow. Research in Motion, the
:06:07. > :06:10.maker of the BlackBerry, is going through the toughest period in its
:06:10. > :06:12.history. Its share price has slumped to a nine-year low as the
:06:12. > :06:15.company flounders against competition from rival smart phones
:06:15. > :06:18.- a far cry - a far cry business executives and their
:06:18. > :06:20.BlackBerries were inseparable. It has already warned investors to
:06:20. > :06:24.expect another grim quarter when it reports earnings later today. Now
:06:24. > :06:33.some fear a turnaround plan may come too late - as Michelle Fleury
:06:34. > :06:41.It may be losing its command in the business section. It's the latest
:06:41. > :06:47.corporate customer to defect. It has 3,000 BlackBerry toting
:06:47. > :06:52.employees but is switching to the Apple iPhone. There are more things
:06:52. > :06:58.moving towards applications to the iPhone. We had to make this
:06:58. > :07:04.transition. The functionality the side, it saves us money. He is
:07:04. > :07:09.there anything he will miss? raised keys are something I will
:07:09. > :07:15.miss. It's not the only business customers switching over. In the
:07:15. > :07:20.big US market, BlackBerry is losing its share. It is dwindling under
:07:20. > :07:28.pressure from Google and Apple as well as fresh competition from
:07:28. > :07:34.Nokia devices. It's not the only disappointment. The playbook failed
:07:34. > :07:38.to catch on. Executives have left adding to the impression they were
:07:38. > :07:45.fleeing the exit. The last year it suffered its worst surface passage
:07:45. > :07:50.in history. A lot now rests on the new BlackBerry software due out
:07:50. > :07:56.later this year. It may not be enough to turn them around.
:07:56. > :07:59.BlackBerry will continue. They will have a tough time to turn around.
:08:00. > :08:05.Unless they have a really innovative product will provide
:08:05. > :08:09.services you cannot get anywhere else, people need to decide whether
:08:09. > :08:14.they really need it and it will be hard to fight off the other Android
:08:14. > :08:21.products and they will take over. After BlackBerry's share price hit
:08:21. > :08:24.an all-time low, investors appear to be running out of patience. The
:08:24. > :08:26.global financial industry is waiting to see who else might be
:08:26. > :08:31.caught up in a massive investigation into market
:08:31. > :08:34.manipulation. On Wednesday Barclays was handed fines of almost half a
:08:34. > :08:37.billion dollars by UK and US regulators for trying to rig the
:08:37. > :08:42.key inter-bank lending rate - or Libor - on which trillions of
:08:42. > :08:52.dollars of transactions are based. Global investigations now span
:08:52. > :08:52.
:08:52. > :08:57.nearly a dozen regulators and more than 20 banks. The board of News
:08:57. > :09:01.Corporation has approved to split the media conglomerate in half
:09:01. > :09:07.according to the Wall Street Journal which is owned by News
:09:07. > :09:11.Corporation. An announcement is due later today. It will separate
:09:11. > :09:15.businesses from the newspaper operations which face declining
:09:15. > :09:18.sales and mounting costs due to the phone hacking scandal. Google has
:09:18. > :09:21.launched its own branded tablet computer in a development we
:09:21. > :09:24.previewed here yesterday. The Nexus 7, which runs Google's own Android
:09:24. > :09:28.software, is being made by Taiwanese company Asus. It will be
:09:28. > :09:38.sold from mid July at $199 - that's half the price of the cheapest
:09:38. > :09:44.
:09:44. > :09:49.Apple iPad - and pitched directly The market is hotting up.