05/07/2012 World Business Report

an international moratorium but hunting for researchers allowed.

Time for bold business report. -- World Business Report.

Welcome. The headlines: The euro falls and Asian stocks rise in

anticipation of a rate cut from the European Central Bank. A crucial

test for Ireland as it returns to the market for its first auction in

nearly two years. Europe's sinking economy and

struggling banks could get some help today from an interest rate

cut by the European Central Bank. Economists think it will reduce

rates by at least 0.25. On Tuesday, the rising expectation of a rate

cut helped lift stock markets in Europe, which have been rallying.

The European Central Bank is likely to hold off for more -- from more

aggressive measures. I'm joined by a currency analyst. A

rate cut is expected today. By how much? Most likely it will be cut

0.25 of their Prasad. There is some talk that they could do twice that

and take the key interest-rate down 0.5%. But they tend to be very slow

and cautious. Why are they doing this now? And many have been

calling for them to do this. Is it a sign that Germany is slowing

down? I think that is the case. There have been signed within the

German economy that we are starting to see a slowdown in industry. And

there is the long-term downward drag from the eurozone crisis.

Should they have gone earlier? I think they should have. Should they

do more this time? I think so. We have to remember that these prices

are in the margins. There is a need to get interest rates down to make

life easier and help deal with the austerity measures. I think they

should do more than they will. it make their life easier? Rates

are already very low. Willie cut make a big difference to Spain,

Italy, Greece? It could make a modest difference. People are

paying more on mortgages. That is if it is passed on. Absolutely. If

it is passed on, it will make a minor cut. More generally, there is

a need to get to the idea of quantitative easing. Making money

cheaper by printing more money. That is what we need in these

countries. Will it led to inflation in Germany? Possibly. But inflation

is at low levels. What the ECB go down that road? They have done the

long-term refinancing operation. Those cheap loans issued last year

and February this year. That was taken up massively. It seemed to to

get us away from the crisis in the banking sector. But we're back in

it with Spain. D think this is something they will consider?

think it is. I saw the All tiara is being an indirect version of one to

take it easing any way. I have no problem whether they do a third

operation on the other one. -- or quantitative easing. We need to get

more money into the system. Bank of England decision on

interest rates is unlikely to do anything. Will we see more money

pumped in? More wanted to be easing from the UK? I think we will.

Probably �50 billion this afternoon. We had a lot of signs in minutes

from the last meeting. The difference between you and the UK

and the eurozone is that we are a nation that can make the decision

quickly. The eurozone has 17 nations. Much more difficult to

come to a decision. Thank you. Let's move on to Ireland. It has

been two years since it was forced to ask for a bank bail-out. Today,

we will find out if it has regained the confidence of market with its

first debt sale in over 1.5 years. Ireland is aiming to sell treasury

bills. Ireland is making a cautious mood

towards regaining the trust of bond investors. When it sells $629

million of Treasury bills, marking the country's first auction since

it was locked out of international capital markets two years ago. At

the height of the banking crisis, the Irish government was forced to

turn to the Europe and International Monetary Fund.

Investors refused to bear -- lend it any more money. If it is to

avoid a second bail out, the government needs to be able to fund

itself from the bond market. The kind here you and IMF loans will

expire next year. Irish yields have declined after you lenders --

European lenders are great that bail out funds will be able to

recapitalise banks directly. Ireland's, and once this policy to

apply retrospectively to its lenders. The average performance in

terms of digging their way out of the whole they were in it is the

most impressive. There are still with the bombs in the road. The

economic environment globally is not terribly promising of the next

six months. That might delay some of the ability of the Irish public

finances to look in better shape. The movies at the mercy of investor

sentiment towards the recession. Any setback in Spain, Italy or

Greece could have the potential to sour sentiment.

Some of the British MPs who questioned the former Chief

Executive of Barclays Bank over- rate fixing have now question the

possibility of his evidence. The chairman of the Treasury Select

Committee and several other members have called into question the

answers given by Bob Diamond during the three-hour session in

parliament yesterday. There will be a parliamentary inquiry into

banking following the scandal. It was surprising that Bob Diamond

said he knew nothing about the rate fixing until a month ago.

The 50.1 % stake in poor show remaining will be bought. -- in

poor shot. Volkswagen will pay $5.6 billion to acquire the stake.

The former head of France Telecom has been put under formal

investigation for harassment. It relates to the suicides of over 30

employees and 2008 and 2009 when he was in charge and presided over an

efficiency drive in which tens of thousands of jobs were cut. Many of

those who killed themselves left notes blaming pressure from

management. He wrote that restructuring of the company may

have upset employees but challenged the idea that it caused suicides.

He was forced to step down in 2010. In Spain, authorities have opened a

court case against former executives of Bankia. 33 officials

are named in the lawsuit, which includes the former chief of the

IMF. The case accuses them of fraud, price-fixing and falsifying

accounts. Many Spaniards arrive happy with Bankia.

The markets today are having their first day of declines for Asia in

seven days. Asia has had six days of gains, probably the best of this

year. There have been up most though this week on the expectation

that the European Central Bank will cut rates today. But also that

Chinese banks would be allowed to reduce their capital reserve ratios