25/07/2012 World Business Report

68. -- Tom Daley. -- John Adam Hills.

Those are the latest headlines from BBC World News. Now for the latest

financial news with Sally Bundock and World Business Report.

Hello and welcome. The French government is poised to

announce measures that IT hopes will save jobs and boost the French

car industry. And Apple shares take a hit - a 21%

rise in net income is not enough to satisfy the Walls Streets lofty

The French government will outline plans today to help the struggling

French car industry. Two weeks ago Peugeot Citroen announced it was

closing one of its car making plants in Aulnay, near Paris, and

would cut 8000 jobs across the country. The French Industry

Minister has offered no specifics about what future help may look

like but was adamant Peugeot must offer something in return for

further support. The BBCs Christian Fraser sent this report from Aulnay.

In the '70s, the assembly plenty who was the future of car

production. From the first moving factory line came in the Citroen, a

car with all the swagger and confidence of the French

manufacturing in and -- industry. Today, the workers are threatened

with the scrapheap. Peugeot-Citroen clues to his -- ute loses a lot

more. For many, the announced closure is an unforgivable betrayal.

TRANSLATION: I have a family, three kids and a mortgage. It is a

catastrophe. They told the workers it will try to source new

activities for the site, but the threat has brought talk of war

because the union says it is not just the jobs at this site at risk.

TRANSLATION: There are 3,000 workers here. Thereat 8,000 around

the planet who work directly for the company. They are also affected.

Francois Hollande had pledged to reduce unemployment. He cannot

afford this. Today's government will announce a package of new

measures to stimulate the car industry with special focus on a

new, green technologies. But what of the wider problems? The industry

is suffering from falling demand. This plant here accounts for any

one-tenth of the demand. The French car company's main global brands

are minnows compared to a competitor's. You talk about

Volkswagen, General Motors, Toyota. We are not really in the same

league. They and not fighting Oliver the world. They add just

plain in Europe. Today's measures may produce much-needed relief. But

finding new markets takes years, which these people don't have.

Peugeot will be revealing the full extent of the losses later today.

We will have those numbers for you when we get them.

It's proving to be another critical week for the eurozone. Investors

are making there feelings very clear with significant falls on

European share markets and interest rates on government debt rising to

record levels. The fear factor is centred on centred on s main stock

market closed down 3.5% on Tuesday and although the Spanish government

managed to raise money on the debt markets the interest it's paying on

its borrowing is now at fresh record highs. Today investors will

be watching news from two key economies in Europe In Germany an

influential barometer of economic health will be released in a few

hours. The IFO index that measures business confidence is expected to

show that morale sank to a 28-month low in July. The manufacturing

sector of Europe's largest economy is likely to have shrunk again as

the euro sovereign debt crisis undermines business and consumer

confidence. This comes as Moody's says its put Germany's prized

triple A debt rating under review. And here in the UK the latest

growth numbers are likely to show the economy here continues to

shrink for the third quarter in a row. The key problems are low

consumer demand at home and weak demand for UK goods in the eurozone.

I am joined by a European Economist to talk about this. It would seem

that it has become very intense once again, the fees about Spain.

Absolutely. The German credit rating story that to highlighted,

perhaps it tells last that this even for Germany. Germany has a

fiscal do it ratio of the 2%. Given that it has an ageing population,

its growth rate and not going to be as strong as the ones we have seen.

In Germany, we are seeing the trend change in terms of the feeling

among business leaders, the confidence. Also the numbers of

following that trend. Until quite recently, Germany has been able to

seek growth. Yes, in part it is because growth elsewhere in China

and other countries which Germany is exposed to is slowing down. It

is a global slowdown. Germany is being hurt by it as well. We saw

the same data in the survey yesterday. German growth was slower.

Is this enough for Angela Merkel to shift to thinking on some key

areas? Like the euro bons? Ways of fixing the crisis that would take

the heat of the markets? It goes back to the initial 0.0 made. I

don't think Germany is strong enough to solve the problems. If it

is not strong enough, and euro bond will hurt dear money as well. The

credit rating story reflects that. In the UK, we expect the growth

figures today. Do you think they will show contraction? Yes, but the

market is looking for miners 0.2. I have a forecast of miners 0.4%. The

recent data has been incredibly volatile. We are getting it wrong

consistently. Be braced for a surprise. OK, that is that has

claimed. Thinking. Shares in the tech giant Apple

plunged 6% in after hours trading in the US after the tech giant

released quarterly earnings that didn't match analysts high

expectations. Despite making $8.8 billion in profits in April May and

June - that's a 21% rise in net income Apple watchers point out its

been getting lower prices for its iPhones and iPads. Mark Gregory

reports from New York. Parry any normal standards, these

were good results. They were 21% higher than the same time last year.

But Apple isn't a normal company. Investors have got used to

exceptional performances. There was huge disappointment that the growth

in the profits was slower than had been predicted. Proffered Syrett

10% less. The result was a huge sell-off in the shares. The stock

price plunged. The issue now is is this just temporary? Sales of the

iPhone have slowed ahead of the release all the expected release of

a new model. Could it be something more permanent? The chances are,

the setback use just temporary. Even so, investors have had a huge

shock. Some other stories making

headlines: Luxury car company Jaguar Land Rover is to create

1,100 new jobs in the UK. The new workers will build the new Jaguar

XF Sportbrake estate car and other models at Jaguar's Castle Bromwich

plant. JLR has already hired 8,000 new workers in the last two years.

The UK government welcomed JLR's decision, which is also expected to

support thousands of jobs with suppliers in the UK.

Japan has reported its biggest half-year trade deficit ever, as

exports weaken and fuel imports soar. The Ministry of Finance

reported a 2.9 trillion yen - that's $37.4 billion - trade

deficit was triple the size of the deficit reported for the same

period last year. First half exports fell 2.5% from last year

while imports surged 13.1%. This deficit is the biggest since Japan

started compiling such records in 1979.

No surprise then to see that the markets in Japan at down