:00:02. > :00:05.68. -- Tom Daley. -- John Adam Hills.
:00:05. > :00:10.Those are the latest headlines from BBC World News. Now for the latest
:00:10. > :00:17.financial news with Sally Bundock and World Business Report.
:00:17. > :00:20.Hello and welcome. The French government is poised to
:00:20. > :00:26.announce measures that IT hopes will save jobs and boost the French
:00:26. > :00:29.car industry. And Apple shares take a hit - a 21%
:00:29. > :00:39.rise in net income is not enough to satisfy the Walls Streets lofty
:00:39. > :00:43.
:00:43. > :00:47.The French government will outline plans today to help the struggling
:00:47. > :00:50.French car industry. Two weeks ago Peugeot Citroen announced it was
:00:50. > :00:54.closing one of its car making plants in Aulnay, near Paris, and
:00:54. > :00:57.would cut 8000 jobs across the country. The French Industry
:00:57. > :01:00.Minister has offered no specifics about what future help may look
:01:00. > :01:10.like but was adamant Peugeot must offer something in return for
:01:10. > :01:11.
:01:11. > :01:15.further support. The BBCs Christian Fraser sent this report from Aulnay.
:01:15. > :01:21.In the '70s, the assembly plenty who was the future of car
:01:21. > :01:25.production. From the first moving factory line came in the Citroen, a
:01:25. > :01:30.car with all the swagger and confidence of the French
:01:30. > :01:37.manufacturing in and -- industry. Today, the workers are threatened
:01:37. > :01:43.with the scrapheap. Peugeot-Citroen clues to his -- ute loses a lot
:01:43. > :01:48.more. For many, the announced closure is an unforgivable betrayal.
:01:48. > :01:53.TRANSLATION: I have a family, three kids and a mortgage. It is a
:01:53. > :01:58.catastrophe. They told the workers it will try to source new
:01:58. > :02:03.activities for the site, but the threat has brought talk of war
:02:03. > :02:08.because the union says it is not just the jobs at this site at risk.
:02:08. > :02:15.TRANSLATION: There are 3,000 workers here. Thereat 8,000 around
:02:15. > :02:19.the planet who work directly for the company. They are also affected.
:02:19. > :02:25.Francois Hollande had pledged to reduce unemployment. He cannot
:02:25. > :02:30.afford this. Today's government will announce a package of new
:02:30. > :02:35.measures to stimulate the car industry with special focus on a
:02:35. > :02:44.new, green technologies. But what of the wider problems? The industry
:02:44. > :02:53.is suffering from falling demand. This plant here accounts for any
:02:53. > :02:59.one-tenth of the demand. The French car company's main global brands
:02:59. > :03:05.are minnows compared to a competitor's. You talk about
:03:05. > :03:14.Volkswagen, General Motors, Toyota. We are not really in the same
:03:14. > :03:20.league. They and not fighting Oliver the world. They add just
:03:20. > :03:28.plain in Europe. Today's measures may produce much-needed relief. But
:03:28. > :03:32.finding new markets takes years, which these people don't have.
:03:32. > :03:36.Peugeot will be revealing the full extent of the losses later today.
:03:36. > :03:38.We will have those numbers for you when we get them.
:03:38. > :03:41.It's proving to be another critical week for the eurozone. Investors
:03:41. > :03:44.are making there feelings very clear with significant falls on
:03:44. > :03:47.European share markets and interest rates on government debt rising to
:03:47. > :03:50.record levels. The fear factor is centred on centred on s main stock
:03:50. > :03:53.market closed down 3.5% on Tuesday and although the Spanish government
:03:53. > :03:57.managed to raise money on the debt markets the interest it's paying on
:03:57. > :04:00.its borrowing is now at fresh record highs. Today investors will
:04:00. > :04:03.be watching news from two key economies in Europe In Germany an
:04:03. > :04:08.influential barometer of economic health will be released in a few
:04:08. > :04:13.hours. The IFO index that measures business confidence is expected to
:04:13. > :04:16.show that morale sank to a 28-month low in July. The manufacturing
:04:16. > :04:18.sector of Europe's largest economy is likely to have shrunk again as
:04:18. > :04:24.the euro sovereign debt crisis undermines business and consumer
:04:24. > :04:29.confidence. This comes as Moody's says its put Germany's prized
:04:29. > :04:32.triple A debt rating under review. And here in the UK the latest
:04:32. > :04:36.growth numbers are likely to show the economy here continues to
:04:36. > :04:46.shrink for the third quarter in a row. The key problems are low
:04:46. > :04:47.
:04:47. > :04:52.consumer demand at home and weak demand for UK goods in the eurozone.
:04:52. > :04:59.I am joined by a European Economist to talk about this. It would seem
:04:59. > :05:04.that it has become very intense once again, the fees about Spain.
:05:04. > :05:13.Absolutely. The German credit rating story that to highlighted,
:05:13. > :05:23.perhaps it tells last that this even for Germany. Germany has a
:05:23. > :05:23.
:05:23. > :05:29.fiscal do it ratio of the 2%. Given that it has an ageing population,
:05:29. > :05:34.its growth rate and not going to be as strong as the ones we have seen.
:05:34. > :05:39.In Germany, we are seeing the trend change in terms of the feeling
:05:39. > :05:43.among business leaders, the confidence. Also the numbers of
:05:44. > :05:52.following that trend. Until quite recently, Germany has been able to
:05:52. > :06:01.seek growth. Yes, in part it is because growth elsewhere in China
:06:01. > :06:05.and other countries which Germany is exposed to is slowing down. It
:06:05. > :06:11.is a global slowdown. Germany is being hurt by it as well. We saw
:06:11. > :06:16.the same data in the survey yesterday. German growth was slower.
:06:16. > :06:23.Is this enough for Angela Merkel to shift to thinking on some key
:06:23. > :06:28.areas? Like the euro bons? Ways of fixing the crisis that would take
:06:28. > :06:32.the heat of the markets? It goes back to the initial 0.0 made. I
:06:32. > :06:41.don't think Germany is strong enough to solve the problems. If it
:06:41. > :06:45.is not strong enough, and euro bond will hurt dear money as well. The
:06:45. > :06:52.credit rating story reflects that. In the UK, we expect the growth
:06:52. > :07:02.figures today. Do you think they will show contraction? Yes, but the
:07:02. > :07:03.
:07:03. > :07:07.market is looking for miners 0.2. I have a forecast of miners 0.4%. The
:07:07. > :07:14.recent data has been incredibly volatile. We are getting it wrong
:07:14. > :07:19.consistently. Be braced for a surprise. OK, that is that has
:07:19. > :07:22.claimed. Thinking. Shares in the tech giant Apple
:07:23. > :07:24.plunged 6% in after hours trading in the US after the tech giant
:07:25. > :07:31.released quarterly earnings that didn't match analysts high
:07:31. > :07:35.expectations. Despite making $8.8 billion in profits in April May and
:07:35. > :07:39.June - that's a 21% rise in net income Apple watchers point out its
:07:39. > :07:48.been getting lower prices for its iPhones and iPads. Mark Gregory
:07:48. > :07:53.reports from New York. Parry any normal standards, these
:07:53. > :07:59.were good results. They were 21% higher than the same time last year.
:07:59. > :08:03.But Apple isn't a normal company. Investors have got used to
:08:04. > :08:08.exceptional performances. There was huge disappointment that the growth
:08:08. > :08:16.in the profits was slower than had been predicted. Proffered Syrett
:08:16. > :08:22.10% less. The result was a huge sell-off in the shares. The stock
:08:22. > :08:27.price plunged. The issue now is is this just temporary? Sales of the
:08:27. > :08:33.iPhone have slowed ahead of the release all the expected release of
:08:33. > :08:38.a new model. Could it be something more permanent? The chances are,
:08:38. > :08:41.the setback use just temporary. Even so, investors have had a huge
:08:41. > :08:44.shock. Some other stories making
:08:44. > :08:47.headlines: Luxury car company Jaguar Land Rover is to create
:08:47. > :08:50.1,100 new jobs in the UK. The new workers will build the new Jaguar
:08:50. > :08:55.XF Sportbrake estate car and other models at Jaguar's Castle Bromwich
:08:55. > :08:58.plant. JLR has already hired 8,000 new workers in the last two years.
:08:58. > :09:04.The UK government welcomed JLR's decision, which is also expected to
:09:04. > :09:06.support thousands of jobs with suppliers in the UK.
:09:06. > :09:10.Japan has reported its biggest half-year trade deficit ever, as
:09:10. > :09:13.exports weaken and fuel imports soar. The Ministry of Finance
:09:13. > :09:17.reported a 2.9 trillion yen - that's $37.4 billion - trade
:09:17. > :09:20.deficit was triple the size of the deficit reported for the same
:09:20. > :09:23.period last year. First half exports fell 2.5% from last year
:09:23. > :09:29.while imports surged 13.1%. This deficit is the biggest since Japan
:09:29. > :09:33.started compiling such records in 1979.
:09:33. > :09:39.No surprise then to see that the markets in Japan at down