31/08/2012 World Business Report

refugees fleeing the conflict. Time for World Business Report.

Welcome to the programme. The headlines: In a downward spiral,

India's growth set to fall to its lowest level in three years.

Disruption expected at Lufthansa or as cabin crew go on strike.

Japan's industrial production slumps as factories decrease output.

It was not long ago that India was one of the fastest-growing

economies in Asia. Big is out this morning expected to show up at

growing. Indian policy makers say they need double digits growth to

create enough jobs for the millions of young workers.

We apologise about that sound. We will hopefully bring it that

package will be. More signs that Japan is being hit

by the euros in debt crisis with bad industrial output figures.

Yesterday, we had the Chinese premier telling some of the

troubled European Cup -- countries to get their finances in order. He

was saying that because an unhealthy Europe means an unhealthy

China. Now it means that -- appears that an unhealthy Europe and China

is not good for Japan. It is a domino effect. Industrial output in

Japan has plunged to it: -- laws Lovell and 16 months. Economists

were expecting growth. The worse than forecast decline was due to

the week global and domestic demand and a slowdown in funding after the

CEO. Many factors are facing intense competition from South

Korean, Taiwanese and other Asian manufacturers. The strong yen has

also been eating into profits. Production is also dragging on

overall output. The forecast for the coming months is looking even

gloomier. Many factories for Sea output continuing its downward

trend in August and September. Asia's other major exporters are

also feeling the pinch. South Korea came out with its industrial output

numbers a few hours ago. It has also fallen by larger than expected

1.6%. It is not looking good. can almost hear those dominoes as

they fall. Thank you. Lufthansa passengers face some

serious disruptions today because of the Lufthansa cabin crew going

on strike. The Union kept secret the locations of the action so that

no replacement staff could be arranged in advance. It represents

around two-thirds of the company's cabin crew. Lufthansa is offering

about 3.5%. The airline introduced a cost-cutting programme in January

with the aim to boost profits by 2014. We are joined on the phone

from fine but airport. You have targeted the country's largest

airport. What sort of support from the cabin crew are you expecting

today? We have an incredible participation from our staff.

Nobody appeared at the briefings to prepare the flight. We have been

overwhelmed by the participation. It will probably be very disruptive

for passengers. You are asking for 5%, the airline has offered 3.5. I

believe you have been quoted as saying that you either get the pay

increase or will continue striking. Lufthansa has about $1 billion in

the bank to see this through. How determined are you? There has been

no offer of 3.5%. There also asked us but 0.2% cost cuts -- for 20%

cost cuts. We will strike as long as is necessary. We want another

offer with no cost cuts and then we will talk again. We have not strike

for 20 years. We are very willing to go through with this. I'm sure

you are aware of the external factors that national carriers like

Lufthansa face. They have to compete against non- unit -- non-

unionised independent carriers. If they don't compete, they don't

survive. We note. That is why we have been negotiating with over a

year. We were willing to give some money and extend the time our

payment would not increase but Lufthansa was unable or unwilling

to guarantee our jobs during the negotiation. That is why we went on

strike. We were aware of her the competition. We are willing to help

but we did not get through in 13 months of negotiation. Thank you.

We will leave it there. Let's talk about this man. US

Federal Reserve chairman Ben Bernanke. He will address the

world's central bankers. His speech will be closely watched for clues

as to whether any more will be done to stimulate the US economy. This

time last year, he used that conference to announce those plans.

Whaling is miles from here but Wall Street will be hanging on his every

word. -- why yearning. Academic papers are presented and discussed.

Two years ago, he used this then you to hint at a second round of

one dictated easing. Twice, they have brought up US debt in an

effort to bring down interest rates and stimulate the flagging recovery.

Investors are looking for signs that they are ready to do more. Few

expect him to break much new ground in his speech. Last week, policy

makers admitted that more stimulus was warranted unless there was a

significant pick-up in the economy. A central bankers gathering.

The man hoping to oust President Obama has delivered his most

important speech so far. Mitt Romney pledged to restore the

promise of America. He also discussed his business record and