:00:06. > :00:09.2020. Those are the latest headlines from BBC World News. Now
:00:09. > :00:19.for the latest financial news with Susannah Streeter and World
:00:19. > :00:21.
:00:21. > :00:31.Business Report. The Euro surges as EU leaders agree measures to boost
:00:31. > :00:35.the economy and ease soaring borrowing costs for Italy and Spain.
:00:35. > :00:42.Mark its in any should bounce back up to the breakthrough at the use
:00:42. > :00:50.summit. Investigators widen their net in an interest rate fixing
:00:50. > :00:53.scandal that has the boss of Barclays fighting for his job.
:00:53. > :00:57.There's been a breakthrough in Brussels after long hours of debate.
:00:57. > :01:00.In the last hour European leaders seem to have agreed a deal to boost
:01:00. > :01:03.growth in the EU and more importantly ease market pressure on
:01:03. > :01:13.Italy and Spain. The agreement : To use the region's bailout fund more
:01:13. > :01:23.flexibly. Also a growth pact, mobilising 120 billion euros of EU
:01:23. > :01:26.money to boost struggling economies and create jobs. We'll get some
:01:26. > :01:29.analysis from Brussels in a moment. First let's go straight to
:01:29. > :01:38.Sharanjit Leyl in Singapore to see how all this is going down with
:01:38. > :01:45.investors. It is going down pretty well with investors. Asian markets
:01:45. > :01:53.are Clearing their earlier losses. The Nikkei shooting up over 1%
:01:53. > :01:57.after its morning break following the news of that breakthrough.
:01:57. > :02:04.Searching and over the psychological 9,000 mark, for the
:02:04. > :02:14.first time in seven weeks. Markets had been something earlier in the
:02:14. > :02:18.
:02:18. > :02:24.day. -- slumping. It is countering dismal news from Japan regarding
:02:24. > :02:29.its industrial production numbers. The biggest fall since the
:02:29. > :02:35.earthquake and tsunami last year. Weakness in European demand was
:02:36. > :02:40.blamed for that, especially the automobile and output in Japan. The
:02:40. > :02:48.EU is the biggest trade partner of many regional economies, including
:02:48. > :02:58.China and Japan. Its health will have a big impact on Asia's export
:02:58. > :03:04.reliant economies. The European move as well is having an impact on
:03:04. > :03:09.currencies: The euro is rising against the yen. That is having an
:03:09. > :03:19.effect on exporters, who rely on a weaker currency to lift their
:03:19. > :03:19.
:03:19. > :03:23.competitiveness overseas. Thank you. Sony Kapoor is from the European
:03:23. > :03:29.think-tank Re-define and he is in our Brussels bureau. Is this really
:03:29. > :03:36.a breakthrough or do you think it could stumble again? It could
:03:36. > :03:42.stumble again, but it is an unexpected development. The summit
:03:42. > :03:47.was not expected to deliver much. But by this breakthrough it has
:03:47. > :03:54.admitted being a complete disaster. We do not know the details yet and
:03:54. > :03:58.they will be fleshed out over six months between now and December.
:03:58. > :04:06.There are many people's and disagreements remaining in the way.
:04:06. > :04:12.What appears to be key in the deal in its help from the bail-out fund
:04:12. > :04:15.to recapitalise the banks. It is essential to reassure the bond
:04:15. > :04:21.markets that the bail-out fund will not get preferential status above
:04:21. > :04:28.other lenders. Is that right? is an important part of the deal,
:04:28. > :04:34.but not as important as said. Timmy, the key is if the bail-out fund is
:04:34. > :04:39.able to inject equity directly into Spanish banks, the rescue does not
:04:39. > :04:43.add to the Spanish government and breaks a vicious link between
:04:43. > :04:50.Spanish banks and the Spanish sovereign. There have been pulling
:04:50. > :04:57.each other down. Seniority status seems to have been put on the shelf
:04:57. > :05:04.now. We have heard about the 20 billion euros boost for growth
:05:04. > :05:12.across the eurozone. Is these new money? Not really. There is some
:05:12. > :05:20.new money, but less than meets the eye. This these small, 1% of
:05:20. > :05:24.eurozone GDP, spread over the next two of three years. Secondly, the
:05:25. > :05:32.single most important thing needed now is slowing down the pace of
:05:32. > :05:39.austerity. This seems to sit alongside Dwight there austerity.
:05:39. > :05:46.As long as the pace of tightening is said Dan 4% of GDP per year, a
:05:46. > :05:53.1% of additional investment will not have growth restored. What is
:05:53. > :05:58.needed in addition to this 120 billion euros is an agreement to
:05:58. > :06:08.slow down the pace of adjustment and habit over an extended period
:06:08. > :06:10.
:06:11. > :06:17.of time so growth does not contract in the short-term. Thank you.
:06:17. > :06:22.Another potentially massive scandal is erupting in the banking world.
:06:22. > :06:32.The full implications of the rigging of market rates by Barclays
:06:32. > :06:32.
:06:32. > :06:36.banks are emerging. They closed 15% down. It has left bob Diamond,
:06:36. > :06:45.Barclays' Consumer Electronic Association, fighting for his job.
:06:45. > :06:50.So far, bob Diamond is toughing it out. David Cameron has called the
:06:50. > :06:56.interbank rate fixing a scandal. Labour are talking of possible
:06:56. > :07:01.criminal prosecutions. Bob Diamond has offered to face MPs on the
:07:01. > :07:09.parliamentary Select Committee, saying that Barclays will have to
:07:09. > :07:13.work every day to restore trust. At their branches it is business as
:07:13. > :07:19.usual, the shares are falling and the company has been fined �300
:07:19. > :07:29.million. Barclays tried to influence those setting be like all
:07:29. > :07:30.
:07:30. > :07:40.rates. Some analysts now say the problem could be a management
:07:40. > :07:47.
:07:47. > :07:53.masterstroke. Arantxa Rus legal -- Libor. Libor is not something
:07:53. > :07:59.agreed by one party, but several. I would find it impossible that
:07:59. > :08:04.Barclays was the only name in the frame. 20 other banks are being
:08:04. > :08:14.investigated. Later, Sir Mervyn King, the Governor of the Bank of
:08:14. > :08:21.
:08:21. > :08:26.England, will deliver the latest report. When the scandal first
:08:26. > :08:36.broke, Barclays Prize actually closed up, but then it dropped like
:08:36. > :08:42.a stern on Thursday. What make people realise it was serious?
:08:42. > :08:46.Politics. Politicians K-Mart and said that if that happened with the
:08:46. > :08:53.bank in their country they would explore criminal legislation to
:08:53. > :09:01.make sure we did not happen again. That is an enormous threat to all
:09:01. > :09:07.the banks. The Times report this morning that RBS could be next. It
:09:07. > :09:12.reports it will be fined �115 million for its part. That has not
:09:12. > :09:18.been confirmed by the Bank yet. This is not just a Barclays Bank
:09:18. > :09:28.problem. Absolutely not. The top 25 banks in the world are somehow
:09:28. > :09:29.
:09:30. > :09:36.involved in his. 100 people are managing this - not a large group
:09:36. > :09:39.of people, but they are spread out among the banks. Bob Diamond has
:09:39. > :09:44.said he will go before a parliamentary committee to talk to
:09:44. > :09:50.them about what happened. He said he did not know anything about it,
:09:51. > :09:58.but should he have done? It is the important. Eight. I do not think
:09:58. > :10:04.they knew about it because they would have changed it if they did.
:10:05. > :10:08.The fact he did not know is inexcusable. He is going in front