03/07/2012 World Business Report

Barclays quit over the scandal. Now for the latest financial news.

This is World Business Report. Here are the headlines: Another of the

UK's top companies mired in scandal. And in Asia, my crime is going to

buy a bankrupted Japanese company for $2 billion.

Another giant in British business is nursing huge damage to his

reputation this morning. Britain's leading drugs company has been

found guilty of the biggest healthcare fraud case in US history.

It is going to pay record fines of $3 billion after admitting it

legally prone -- illegally promoted its most popular drugs. It also

admitted to aggressive marketing techniques, including lavish

holidays for doctors. It has broken a record it wishes it

hadn't. The US Justice Department said the British drug maker had

fled guilty to criminal charges. It agreed to play -- pay $3 billion.

Today's settlement is unprecedented in both scope and size. It

underscores this administration's firm commitment to protecting the

American people and holding accountable those who commit fraud.

What did they do wrong? They tried to sell an anti-depressant for

adults to children. It promoted another treatment for purposes it

had not been approved for. It admitted it had learned from its

mistakes. They made a statement: for pharmaceutical companies

aggressively promoting a growth -- drug cannot make a blockbuster.

They disgrace may serve as a warning that over enthusiastic

marketing comes with a risk for the companies as well as the patience.

Taking a look at some of the leading stories in Asia. We cross

to Singapore. We have been looking at the story

of a Japanese company being bought up. This would make this company a

large dealer in ships. It would become the world's second largest

maker in the product. These are used in personal computers, smart

phones and tablet PCs. The company had filed for bankruptcy in

February. This was after being unable to pay debts of $5.8 billion.

The deal would help strengthen the combined companies market position.

It actually acquired its Japanese rival for a fraction of the price

it would have needed to build a similar infrastructure. They say it

would have cost $68 billion to build a new plant. This is a good

saving for the company. They have been having massive problems due to

falling prices. After winning the presidency and

scoring a landslide in Parliament, Francois Hollande will have to look

at the revised budget before our meeting Cabinet on Wednesday. The

quote of the cancer is the government will need to find 6

billion euros in extra savings. They will need to find 33 billion

euros next year. Francois Hollande promised an end

to austerity, say he can reduce government debt through economic

growth. But the Court of accounts says that government borrowing is

still on the rise. The government says they must cut the deficit by

as much as 43 billion euros in the next three years. To

taxes on big business are being put forward. The French economic

outlook will remain very weak. This is especially if troubles in the

eurozone persist. French GDP will grow by about 1% next year. Might

even be too optimistic. He will have to announce the do spending

cuts. The Court of accounts has warned the French Government that

unless it acts urgently, it risks unnerving bond markets in

international financial sectors. It could push up the cost of borrowing.

The bond markets have been very tolerant of Francois Hollande.

Yields on French government bonsai and trading at below the rate than

they were in the first quarter of this year. Will France face any

further credit rating downgrades, like the one standard and Poor's

announced last January? It is like the sword of Damocles hanging over

France. It is next here that everyone will be looking to see

what kind of regulations will be put in place. Right now the key

impetus for any move in interest rates in France is the euro crisis

picture. The most immediate risk were France is that markets could

lose all confidence in the eurozone. There might be light at the end of

the tunnel for the world's economy. That is according to thousands of

global businesses. Almost 40% want to increase investment in machinery

this year. Even higher in emerging markets. There is also good news

for workers. 70% of companies are planning pay rises. Despite this,

expectations for profits and revenues for 2012 are down or at

best flat. I am joined by the executive of the group that

compiled this research. It is good to have someone on this programme

who has something good to say about the global economy. You say this is

about the years ahead? Absolutely. What businesses are telling us is

that they want profits to be down in the to return, but making the

necessary investments to be successful over the long-term.

you say they are making the necessary investments, many

companies we talk to say they want to do this and expand, but they are

struggling. What about the people you spoke to? It varies area by

area. Some companies are sitting on a lot of cash. In the US they are

sitting on 1.7 trillion dollars of cash. Even China and Europe are

sitting on a lot. Businesses need to access capital. It is critical.

That was the concern in Italy when I was there. I imagine that is true

in many southern European countries. With your research, it is the

emerging markets leading the way. Is it the usual suspects that are

pushing forward? Particularly China and India. They are making their

investments in research and development. They want to lead with

a research and development to develop their own products and

opportunities. That is what has changed.

We have to leave it there. Good to hear some positive news. Companies

are making investments for the future.

Microsoft's bought a company in a bid to take on Google in search

related advertising. The $6.3 billion deal was Microsoft's

figures that the time. It wiped out all of the company's profits for

the last quarter. Markets are pretty perky in Asia. Showing you

how things are going: one of the reasons for this, central bankers

are currently poised to do something to boost economies. A lot

of attention on the European Central Bank. Many predict interest

rates will be cut in the eurozone. That is an encouraging story. In