:00:16. > :00:25.refugees fleeing the conflict. Time for World Business Report.
:00:25. > :00:29.Welcome to the programme. The headlines: In a downward spiral,
:00:29. > :00:37.India's growth set to fall to its lowest level in three years.
:00:37. > :00:47.Disruption expected at Lufthansa or as cabin crew go on strike.
:00:47. > :00:58.
:00:58. > :01:02.Japan's industrial production slumps as factories decrease output.
:01:02. > :01:11.It was not long ago that India was one of the fastest-growing
:01:11. > :01:16.economies in Asia. Big is out this morning expected to show up at
:01:16. > :01:26.growing. Indian policy makers say they need double digits growth to
:01:26. > :01:36.
:01:36. > :01:40.create enough jobs for the millions of young workers.
:01:40. > :01:45.We apologise about that sound. We will hopefully bring it that
:01:45. > :01:55.package will be. More signs that Japan is being hit
:01:55. > :02:00.by the euros in debt crisis with bad industrial output figures.
:02:00. > :02:05.Yesterday, we had the Chinese premier telling some of the
:02:05. > :02:08.troubled European Cup -- countries to get their finances in order. He
:02:08. > :02:14.was saying that because an unhealthy Europe means an unhealthy
:02:14. > :02:20.China. Now it means that -- appears that an unhealthy Europe and China
:02:20. > :02:26.is not good for Japan. It is a domino effect. Industrial output in
:02:26. > :02:32.Japan has plunged to it: -- laws Lovell and 16 months. Economists
:02:32. > :02:40.were expecting growth. The worse than forecast decline was due to
:02:40. > :02:45.the week global and domestic demand and a slowdown in funding after the
:02:45. > :02:52.CEO. Many factors are facing intense competition from South
:02:52. > :02:59.Korean, Taiwanese and other Asian manufacturers. The strong yen has
:02:59. > :03:02.also been eating into profits. Production is also dragging on
:03:02. > :03:07.overall output. The forecast for the coming months is looking even
:03:07. > :03:12.gloomier. Many factories for Sea output continuing its downward
:03:12. > :03:18.trend in August and September. Asia's other major exporters are
:03:18. > :03:25.also feeling the pinch. South Korea came out with its industrial output
:03:25. > :03:33.numbers a few hours ago. It has also fallen by larger than expected
:03:33. > :03:43.1.6%. It is not looking good. can almost hear those dominoes as
:03:43. > :03:47.they fall. Thank you. Lufthansa passengers face some
:03:47. > :03:54.serious disruptions today because of the Lufthansa cabin crew going
:03:54. > :04:02.on strike. The Union kept secret the locations of the action so that
:04:02. > :04:12.no replacement staff could be arranged in advance. It represents
:04:12. > :04:12.
:04:12. > :04:19.around two-thirds of the company's cabin crew. Lufthansa is offering
:04:19. > :04:29.about 3.5%. The airline introduced a cost-cutting programme in January
:04:29. > :04:32.
:04:32. > :04:41.with the aim to boost profits by 2014. We are joined on the phone
:04:41. > :04:49.from fine but airport. You have targeted the country's largest
:04:49. > :04:59.airport. What sort of support from the cabin crew are you expecting
:04:59. > :05:10.
:05:10. > :05:16.today? We have an incredible participation from our staff.
:05:16. > :05:20.Nobody appeared at the briefings to prepare the flight. We have been
:05:20. > :05:26.overwhelmed by the participation. It will probably be very disruptive
:05:26. > :05:31.for passengers. You are asking for 5%, the airline has offered 3.5. I
:05:31. > :05:37.believe you have been quoted as saying that you either get the pay
:05:37. > :05:46.increase or will continue striking. Lufthansa has about $1 billion in
:05:46. > :05:56.the bank to see this through. How determined are you? There has been
:05:56. > :05:59.
:05:59. > :06:08.no offer of 3.5%. There also asked us but 0.2% cost cuts -- for 20%
:06:08. > :06:14.cost cuts. We will strike as long as is necessary. We want another
:06:14. > :06:24.offer with no cost cuts and then we will talk again. We have not strike
:06:24. > :06:30.
:06:30. > :06:36.for 20 years. We are very willing to go through with this. I'm sure
:06:36. > :06:46.you are aware of the external factors that national carriers like
:06:46. > :06:46.
:06:46. > :06:49.Lufthansa face. They have to compete against non- unit -- non-
:06:49. > :06:54.unionised independent carriers. If they don't compete, they don't
:06:54. > :07:02.survive. We note. That is why we have been negotiating with over a
:07:02. > :07:06.year. We were willing to give some money and extend the time our
:07:06. > :07:11.payment would not increase but Lufthansa was unable or unwilling
:07:11. > :07:20.to guarantee our jobs during the negotiation. That is why we went on
:07:20. > :07:27.strike. We were aware of her the competition. We are willing to help
:07:27. > :07:37.but we did not get through in 13 months of negotiation. Thank you.
:07:37. > :07:43.
:07:43. > :07:47.We will leave it there. Let's talk about this man. US
:07:47. > :07:52.Federal Reserve chairman Ben Bernanke. He will address the
:07:52. > :07:56.world's central bankers. His speech will be closely watched for clues
:07:56. > :08:06.as to whether any more will be done to stimulate the US economy. This
:08:06. > :08:07.
:08:07. > :08:12.time last year, he used that conference to announce those plans.
:08:12. > :08:22.Whaling is miles from here but Wall Street will be hanging on his every
:08:22. > :08:23.
:08:23. > :08:28.word. -- why yearning. Academic papers are presented and discussed.
:08:28. > :08:34.Two years ago, he used this then you to hint at a second round of
:08:34. > :08:39.one dictated easing. Twice, they have brought up US debt in an
:08:39. > :08:43.effort to bring down interest rates and stimulate the flagging recovery.
:08:43. > :08:48.Investors are looking for signs that they are ready to do more. Few
:08:48. > :08:53.expect him to break much new ground in his speech. Last week, policy
:08:53. > :09:03.makers admitted that more stimulus was warranted unless there was a
:09:03. > :09:08.
:09:08. > :09:10.significant pick-up in the economy. A central bankers gathering.
:09:11. > :09:15.The man hoping to oust President Obama has delivered his most
:09:15. > :09:23.important speech so far. Mitt Romney pledged to restore the
:09:23. > :09:33.promise of America. He also discussed his business record and
:09:33. > :09:37.