:00:02. > :00:12.headlines from BBC World News. Now for the latest financial news with
:00:12. > :00:15.
:00:15. > :00:21.World Business Report. The road to recession - figures out this
:00:21. > :00:24.morning are set to show the eurozone economy contracting. And
:00:24. > :00:27.shares in the deals website Groupon plunge further in after hour
:00:27. > :00:31.trading as earnings disappoint investors Evidence is due out this
:00:31. > :00:41.morning of the extent of the damage that the debt crisis is wreaking in
:00:41. > :00:52.
:00:52. > :00:57.the eurozone - in the form of the Evidences cure and this morning of
:00:57. > :01:03.the extent of the damage the debt crisis is wreaking in the euro-zone.
:01:03. > :01:09.GDP figures for the second quarters - many expected the first step
:01:09. > :01:14.towards recession. The forecast is for a contraction of 0.2 per cent.
:01:14. > :01:20.Germany is expected to have grown by 0.2 per cent but that is still
:01:20. > :01:23.down. No action to stimulate the economy is likely before September
:01:24. > :01:33.and Spain will decide whether it needs a bail-out and international
:01:34. > :01:36.
:01:36. > :01:41.monitors will report back on Greece. Things were starting to look up.
:01:41. > :01:51.The euro-zone stabilised in the first quarter but a decline puts us
:01:51. > :01:52.
:01:52. > :02:00.firmly back in the course of a recession. What do you think?
:02:00. > :02:05.likely we will have recession. And we are pencilling in a contraction
:02:05. > :02:12.of 0.2 per cent. There is not a lot policy makers can do. There is a
:02:12. > :02:16.lack of confidence with consumers. This is because of the euro crisis
:02:16. > :02:20.grinding on for months and months. Growth will be much weaker than
:02:20. > :02:28.expected at the beginning of this year and will have an impact on
:02:28. > :02:33.what the central bank does in terms of fiscal policy. You mention the
:02:33. > :02:40.figure of 0.2 per cent - worse than what many economists were
:02:40. > :02:45.predicting. Talking about individual GDP figures, they will
:02:45. > :02:51.be released staggered throughout the course of the day. Germany is
:02:51. > :02:58.believed to have posted modest growth. Do you agree with that or
:02:58. > :03:06.are we in for more shock announcements? Belgium has posted
:03:06. > :03:11.his -- it has contracted a? Germany we have a stagnation of GDP.
:03:11. > :03:15.That will be one of the best figures will get out of the euro-
:03:16. > :03:21.zone. If you compare Germany compared to what it had last
:03:21. > :03:27.quarter, it would be a sharp slowdown. That is worrying because
:03:27. > :03:30.Germany was the powerhouse of European economic growth and
:03:30. > :03:40.Germany will slow down substantially. The most important
:03:40. > :03:41.
:03:41. > :03:47.impact will be that the growth outlook of June. When they review
:03:47. > :03:55.the figures in September, that might mean they will cut rates by
:03:55. > :04:00.25 basis points because figure -- fears are worse than expected.
:04:00. > :04:06.possible remedies - what actions can they take come September or is
:04:06. > :04:13.this purely about confidence? is purely about confidence. At
:04:13. > :04:19.interest rates at 0.75 per cent it might not make a lot of difference
:04:19. > :04:24.if you cut them to 0.5 per cent. Corporates have a lot of cash.
:04:24. > :04:29.There is no real problem with most consumers it is the lack of
:04:29. > :04:35.confidence. It is the crisis which is leading them to postpone all the
:04:35. > :04:40.spending. It is only politicians that can come up with credible
:04:40. > :04:46.plans and implement them - fiscal unions, banking unions. That takes
:04:46. > :04:52.time. That is the bigger drama of the current growth figures. Growth
:04:52. > :05:02.is relatively weak. The politicians in the euro-zone have to come up
:05:02. > :05:03.
:05:03. > :05:08.with a credible plan and implement it. Many thanks. Shares in anti-
:05:08. > :05:13.glassing campaign fell 20 per cent in after our trade. That is despite
:05:13. > :05:17.swinging into profit. Second- quarter earnings reported last
:05:17. > :05:24.night shows sales growth slowing. The Web site offers customers
:05:24. > :05:31.discounts on everything. It listed on the stock market last November
:05:31. > :05:38.but shares have already lost some 60 per cent of the initial value.
:05:38. > :05:43.In only its second sets of results, Groupon made money. But the stocks
:05:43. > :05:48.reached all-time lows. Investors fear the potential they once saw
:05:48. > :05:54.may have been misplaced. Customers might be getting sick and tired of
:05:54. > :06:04.all those coupons and deals - just at a time when trumpet mack faces
:06:04. > :06:07.
:06:07. > :06:14.more competition. -- Groupon. If you compare previous results. Her
:06:14. > :06:20.Wall Street was left underwhelmed. The chief executive of chatted
:06:21. > :06:28.Standard Chartered has flown to New York in an attempt to come to a
:06:28. > :06:32.deal with regulators. The authorities accuse the Bank of
:06:32. > :06:38.laundering some $250 billion to Iran. The bank has admitted some
:06:38. > :06:42.illegal transactions but said it is just $14 million. The bank has been
:06:42. > :06:45.summoned for parliamentary hearings on Wednesday. President Obama has
:06:45. > :06:50.announced the US government will buy up to one under $70 million
:06:50. > :06:56.worth of meat and fish to help farmers hit by the worst drought in
:06:56. > :07:00.50 years. On a three-day election tour in Iowa, estate badly affected
:07:00. > :07:09.by the hot weather, the President said the food would be sent to
:07:09. > :07:15.assistance programmes such as food bank. Figures are out shortly and
:07:15. > :07:25.likely to show prices in India continuing to rise. The central
:07:25. > :07:28.
:07:28. > :07:33.bank have said levels are too high. What can you tell us?
:07:33. > :07:43.expectation is for prices to remain at high levels. Consensus is for
:07:43. > :07:43.
:07:43. > :07:53.all some prices, the benchmark, to edge higher in the month of July at
:07:53. > :07:59.from 7.25 per cent. The data would likely reduce expectations for a
:07:59. > :08:04.rate cut. The central bank government in India striking a
:08:04. > :08:14.atone emphasising his concern inflation remains too high and is
:08:14. > :08:19.persuading the government to look at its spending. Demand factors and
:08:19. > :08:25.not just supply shocks. There is a current dilemma with economic
:08:25. > :08:32.growth slowing. Business and policy makers are calling for rate cuts.
:08:32. > :08:38.The rising prices has them on hold. There is a weaker currency and
:08:38. > :08:45.monsoon rain could rise to the price of food and that is why they
:08:45. > :08:50.should keep rates on hold at their next meeting in September.
:08:50. > :08:57.shipping industry has long been seen as the indicator for global
:08:57. > :09:03.growth. When the company with the biggest fleet of container ships
:09:03. > :09:08.come -- reports is more than just in just about the company. To many,
:09:08. > :09:18.container ships on the world's oceans, chasing too little freight
:09:18. > :09:19.
:09:19. > :09:24.business to keep them saving properly. For Denmark's company, it
:09:24. > :09:28.hopes to beat the competition on service quality. Container shipping
:09:28. > :09:33.charges have risen, raising hopes of a turnaround after heavy losses
:09:33. > :09:40.in the first three months of the year. The company has said it is
:09:40. > :09:45.not exactly where hoped to be a year ago. It is in its 4th year of
:09:45. > :09:51.a sharp decline. It is one reason why it has invested heavily in the
:09:51. > :09:59.offshore gas and services industry. A City analyst says the company's
:09:59. > :10:06.aim is to capitalise so can charge premium price -- capitalise on its
:10:06. > :10:09.reputation. Delivering more containers on time. 91 per cent of
:10:09. > :10:18.containers are delivered on time of verses the industry average which
:10:18. > :10:23.is in the 70 per cent. That might over -- another to charge a premium
:10:23. > :10:30.making sure they can earn higher margins. Since last summer, the