:00:03. > :00:12.headlines from BBC News. Now for the latest financial news with
:00:12. > :00:21.Sally Bundock and World Business Report.
:00:21. > :00:24.Welcome to World Business Report. The headlines: Another day of
:00:24. > :00:27.disruption for Lufthansa flights as cabin crew step-up their strike
:00:27. > :00:37.action over pay. A day of high level negotiations across Europe
:00:37. > :00:47.today. Will European leaders deliver answers to the debt crisis?
:00:47. > :00:59.
:00:59. > :01:05.accused of employee in under-age workers. -- employing. A strike is
:01:05. > :01:08.underway by Lufthansa cabin crew this morning. Their main union has
:01:08. > :01:12.called on staff to strike at Frankfurt Airport until 2pm local
:01:12. > :01:15.time and at Berlin's Tegel Airport until 1pm local time. On Friday a
:01:15. > :01:18.strike at Frankfurt Airport caused almost 200 Lufthansa flights to be
:01:18. > :01:21.cancelled. The union says its strikes will get longer and more
:01:21. > :01:29.widespread from now on. So how far could this dispute escalate?
:01:29. > :01:35.These Rhodesians at Frankfurt airport last Friday. -- were the
:01:35. > :01:42.scenes. 150 flights had to be cancelled. More and more airports
:01:42. > :01:48.will be affected from now on. They are demanding a 5% pay rise for
:01:48. > :01:54.flight attendants. Lufthansa is offering 3.5%. They are striking
:01:54. > :01:58.against company plans to of the pay and conditions. As part of a $2
:01:58. > :02:03.billion cost-cutting exercise. the union gives now, the impetus
:02:03. > :02:09.will be with Lufthansa to push through changes to terms and
:02:09. > :02:15.conditions which have already been negotiated through the union. The
:02:15. > :02:20.union will have lost the dispute. This dispute will be running for
:02:20. > :02:26.several months. Other airlines have faced similar opposition to changes
:02:26. > :02:36.in employment terms. Iberia pilots caused chaos in Spanish airport
:02:36. > :02:38.
:02:38. > :02:46.last winter. Iberia eventually got its way in the dispute, something
:02:47. > :02:54.Lufthansa or will there as well. Lufthansa has about 1 billion euros
:02:54. > :02:59.in the bank. Unless the union can bring the company to its knees
:02:59. > :03:09.pretty quickly, management will rely on that cash to tide it over
:03:09. > :03:10.
:03:10. > :03:19.and win the dispute. Air France are planning to introduce cost-cutting
:03:20. > :03:23.measures similar to Lufthansa. They will face fierce union resistance.
:03:23. > :03:26.September is likely to be an important month of European leaders
:03:26. > :03:30.as they tackle the region's debt crisis. And today there will be a
:03:30. > :03:34.flurry of activity. French President Francois Hollande travels
:03:34. > :03:44.to Rome to meet the Italian Prime Minister Mario Monti. The two will
:03:44. > :03:47.hold a press conference after the meeting. German Chancellor Angela
:03:47. > :03:52.Merkel meets the European Council President, Herman van Rompuy, in
:03:52. > :03:55.Berlin. The Greek finance minister, Yannnis Stournaras, is also in
:03:55. > :03:58.Berlin today to meet with his German counterpart, Wolfgang
:03:58. > :04:04.Schaeuble. Marie Diron is the senior economic adviser to the
:04:04. > :04:10.Ernst & Young Eurozone Forecast. Thank you for coming in. It is no
:04:10. > :04:20.coincidence they are having all these meetings before Thursday's
:04:20. > :04:23.
:04:23. > :04:28.announcement? Yes, we will begin with the ECB message on Thursday.
:04:28. > :04:33.We will hear a lot of measures on Greece, on Spain, throughout the
:04:33. > :04:40.month. What do you think the different leaders are trying to
:04:40. > :04:44.push for today? Real differences about the bond buying programme.
:04:44. > :04:51.There are still a lot of differences. We are not going to
:04:51. > :04:57.hear anything today. It will be on Thursday. The differences are
:04:57. > :05:03.between Germany, which wants to make these bond purchases highly
:05:03. > :05:10.conditional on a set of measures taken on by the government.
:05:10. > :05:16.Countries like Spain would like this purchase programme to be more
:05:16. > :05:21.open and more flexible. The intentions are there, the decisions
:05:21. > :05:27.are difficult to take. This week, they're meeting ahead of the ECB
:05:27. > :05:37.announcement. Once we get beyond that, a very important vote going
:05:37. > :05:41.
:05:41. > :05:51.on in Germany on 12th September. Yes, Germany is the last country
:05:51. > :05:55.
:05:55. > :06:00.that needs to ratify this treaty for the ESM to come in. That is to
:06:00. > :06:06.provide funding to Spain. It is unlikely they will vote against it.
:06:06. > :06:12.It would provoke a chain reaction and start panic again. We will get
:06:12. > :06:19.Spain's reaction to the European Central Bank announcement on
:06:19. > :06:27.Thursday. Greece is continuing in the background. The Greece
:06:27. > :06:31.government has asked for more time on the bail-out plan. The troika
:06:32. > :06:36.will be negotiating as the meetings go on as to whether they will get
:06:36. > :06:43.that. With think they will get a bit more time, not as much as they
:06:43. > :06:53.would like. They have made progress and effort. There will be a
:06:53. > :06:53.
:06:53. > :06:57.compromise. Thank you for coming in. Samsung Electronics will inspect
:06:57. > :07:03.its suppliers in China after one of them was accused of using child
:07:03. > :07:08.labour. In total 250 firms will be inspected. Rico Hizon is in the
:07:08. > :07:18.BBC's Singapore office. Tell us about Samsung and its
:07:18. > :07:18.
:07:19. > :07:26.investigations. A probe this stemmed from a US based NGO
:07:26. > :07:32.expressing concern that a Samsung supplier had employed seven
:07:32. > :07:37.children younger than 16 working in the factory. Samsung, which
:07:37. > :07:42.conducted its own investigation of the company, said it found no
:07:42. > :07:48.under-age workers. It identified several incidents of poor
:07:48. > :07:52.management, unsafe practices and improper safety measures. They
:07:52. > :07:59.warned the supply to immediately improve its conditions or else it's
:07:59. > :08:05.contract will be terminated. The electronics giant is taking the US
:08:05. > :08:13.based NGO probe very seriously. They say they will conduct
:08:13. > :08:18.inspections for 195 of its supply companies. They will review another
:08:18. > :08:23.144 suppliers that make products for them and other companies. After
:08:23. > :08:31.the reviews, if there is some violation, contracts with those
:08:31. > :08:38.supply companies will be terminated. Thank you. Spanish authorities have
:08:38. > :08:41.approved a massive cash injection for struggling lender Bankia.
:08:41. > :08:44.Bankia will receive 4.5 billion euros, that's $5.7 billion from
:08:44. > :08:48.Spain's national bank rescue fund. The bailout still needs approval
:08:48. > :08:51.from the Bank of Spain and the government.
:08:51. > :08:55.Lonmin has warned that a strike at its South African mine is
:08:55. > :08:59.threatening 40,000 jobs. Lonmin says there is a limit to how long
:08:59. > :09:03.it can keep the Marikana mine open without staff to run out. The
:09:03. > :09:13.strike has been going of for almost four weeks and 44 have died in
:09:13. > :09:18.
:09:18. > :09:20.violence around the facility. Seven suits belonging to former
:09:20. > :09:24.British Prime Minister, Margaret Thatcher, fetched �73,000, or
:09:24. > :09:27.$115,000, at auction on Monday. Six of the suits were bought by an
:09:27. > :09:31.online bidder in South Korea. The highest price was paid for a jade
:09:31. > :09:41.green suit worn on the day she was confirmed as leader of the
:09:41. > :09:42.