:00:02. > :00:12.Those are the latest headlines. It is now time for World Business
:00:12. > :00:20.
:00:20. > :00:24.A very warm welcome to World Business Report. Time to deliver it
:00:24. > :00:29.- press announced on the European Central Bank to present a solution
:00:29. > :00:33.to the eurozone crisis. A key partnership in the aviation
:00:33. > :00:37.industry as Qantas and Emirates forge an alliance that will shift
:00:37. > :00:44.the Israeli carrier's long haul up to two by a from Singapore. --
:00:44. > :00:54.Australian. Plus, defending Obama's economics.
:00:54. > :00:59.
:00:59. > :01:03.He will argue that it could have A very warm welcome. The summer
:01:03. > :01:09.holidays are officially over. Once again, decision time looms for the
:01:09. > :01:14.eurozone. Chancellor Merkel is in Madrid today, trying to gauge how
:01:14. > :01:20.close they may be to needing a full bail-out. Meanwhile, in Fringford,
:01:20. > :01:24.the European Central Bank holds a vital meeting. -- Frankfurt.
:01:24. > :01:31.Expectations have been riding high since the ECB chafe would do
:01:31. > :01:35.whatever it takes to preserve the euro.
:01:35. > :01:39.First we go to Germany. Europe's paymaster has to decide between
:01:39. > :01:46.digging deeper into its reserves to keep the eurozone currency intact
:01:46. > :01:51.or cutting its losses. Now Europe Business Correspondent reports from
:01:51. > :01:57.southern Germany. They have been making top-quality
:01:57. > :02:02.pencils here for over 250 years. The paper generation of the family
:02:02. > :02:05.is unlikely to be courted by a currency crisis. What the cut the -
:02:05. > :02:11.- family doesn't care for is what it sees as pre-election posturing
:02:11. > :02:16.by some of the region's populist politicians. Those who were to stop
:02:16. > :02:24.extending a financial lifeline to the eurozone's most over-borrowed.
:02:24. > :02:31.His message, Germany has to hang on in there. to say we have to get rid
:02:31. > :02:36.of Greece is easy. We do not know what comes in addition to that. We
:02:36. > :02:41.would have to be aware that it would be very expensive. Had we
:02:41. > :02:46.keep our competitiveness in Germany? There is no good solution.
:02:46. > :02:51.There are only lousy options. The question is which is less lousy? I
:02:51. > :02:57.am still a fan of the euro. It is a big slice of a tax take from
:02:57. > :03:07.successful companies like this which are autumn at the Bank Rowing
:03:07. > :03:09.
:03:09. > :03:16.After a summer of discontent here in Bavaria, what is the tipping 0.4
:03:16. > :03:23.Germany? Nearby, the chief of this toymaker believes more bail-outs
:03:23. > :03:31.will be supported. I think what we definitely need is some kind of a
:03:31. > :03:37.sign for a positive trend. It will be very hard for people to look at
:03:37. > :03:43.a sharp decline and still say, let's go for it. In some countries
:03:43. > :03:49.we need positive trend reactions and I very much hope this will
:03:49. > :03:55.happen. The game could be changed by a court decision halting German
:03:55. > :04:05.rescue spending next week. Germans here to see resigned to providing
:04:05. > :04:10.
:04:10. > :04:14.more supply a tour of the eurozone together.
:04:14. > :04:18.Analysts saying that the president of the ECB is relief on the line
:04:18. > :04:23.today. He set himself up as the man whose mission it is to save the
:04:23. > :04:29.Euro, but it has been over a month ape since he said he would do
:04:29. > :04:37.whatever it takes to say the currency. Have expectations been
:04:37. > :04:41.ramped up to lie? I think there is enormous pressure on him and the
:04:41. > :04:46.European Central Bank. But I think they would deliver today. He will
:04:46. > :04:56.present a plan on how the ECB thinks they will purchase bonds to
:04:56. > :04:58.
:04:58. > :05:01.support the country in need. Will this proposal prove any more
:05:01. > :05:10.effective than the very similar security market programme which we
:05:10. > :05:15.saw last year? It depends on the details. I think it will be better.
:05:15. > :05:22.I think it will be more effective. Let's not forget it will also
:05:22. > :05:27.depend on cue medication. Here, the German central bank is key. The
:05:27. > :05:31.whole programme was often torpedoed by the hold President. If the
:05:31. > :05:34.current president can keep a lot communication profile after the
:05:34. > :05:41.decision, I think the entire plan can be much more effective than
:05:41. > :05:46.what we saw over the last two years. Let's talk about Germany. The
:05:46. > :05:49.President is repeatedly described as walking a tightrope. Germany's
:05:49. > :05:54.Central Bank has repeatedly come out and said it is not the job of
:05:54. > :05:58.the ECB to bail out weaker eurozone economies, that the job of the
:05:58. > :06:06.Central Paper is solely to focus on price stability. Can it be moved on
:06:06. > :06:12.this point? The ECB will try to continue walking on this in mind,
:06:12. > :06:15.saying it is not financing governments, but that it is mainly
:06:15. > :06:18.aiming at repairing the so-called transmission mechanism of monetary
:06:18. > :06:23.policy, which means they will try to have an effect on short-term
:06:23. > :06:29.interest rates. These are the rates that are linked to the ECB's
:06:29. > :06:31.interest rate. If they can no way it, it will also have an impact on
:06:31. > :06:40.the economies because then companies and people can borrow
:06:40. > :06:50.much cheaper. Some long expected news from
:06:50. > :06:51.
:06:51. > :06:55.Australia airline -- Australian airline Qantas. Tell us all about
:06:55. > :07:01.this, this partnership between Qantas and Emirates. Was it would
:07:01. > :07:06.be expected be expected Well, it was quite a surprise to
:07:06. > :07:11.many aviation analysts. They signed a ten-year partnership and this
:07:11. > :07:19.will involve moving Qantas's hard- fought European flights to Dubai
:07:19. > :07:24.from Singapore. They will are lying ticket prices and flight schedules.
:07:24. > :07:27.This decade-long agreement may also save Qantas from more losses and
:07:27. > :07:34.turn around its fortunes. Last month the carrier posted its first
:07:34. > :07:37.annual loss since its privatisation 17 years ago. Analysts say this is
:07:37. > :07:41.also a significant departure for Emirates which has avoided closer
:07:41. > :07:46.of partnerships with rivals as it has grown into the biggest
:07:46. > :07:52.international passenger carrier. You also have intense pressure from
:07:52. > :07:57.its rival Etihad. It also offers an Reds greater access to Australia's
:07:57. > :08:02.booming domestic treble network. This deal will probably reignite
:08:02. > :08:07.long-stemmed complaints who say it is unfairly subsidised.
:08:07. > :08:15.Markets have reacted positively to this news as well, haven't they?
:08:15. > :08:18.Shares in Qantas have jumped some Later today, Barack Obama will
:08:18. > :08:22.accept the Democratic presidential nomination and deliver his
:08:22. > :08:28.convention speech. His narrowly ahead in the polls, but the economy
:08:28. > :08:31.is the top of voter concern. Unemployment has been a but some 8%
:08:31. > :08:34.for 42 months now. That is the longer since the end of World War
:08:34. > :08:43.II. What can he see that might convince voters that he can get the
:08:43. > :08:47.economy back on track? Barack Obama's election in 2008
:08:47. > :08:52.sparked celebrations in Harlem. Four years on, millions of American
:08:52. > :08:58.jobs have been lost. The support is still there, but people are less
:08:58. > :09:04.starry-eyed. I am a supporter and I think he's doing the best he can.
:09:04. > :09:08.think he deserves a chance to finish what he started.
:09:08. > :09:12.Charlotte North Carolina, Democrats argue the economy would have been
:09:12. > :09:18.far worse without President Obama. When he took office, the economy
:09:18. > :09:24.was falling off a cliff. Financial services, the credit markets
:09:24. > :09:31.closing down, the water industry collapsing, the housing industry
:09:31. > :09:36.collapsing. 800,000 jobs were lost in one mind. It was a precipitous
:09:36. > :09:42.decline. Within a few months, through a series of major policy
:09:42. > :09:49.initiatives, including the stimulus package, the economy began to stop
:09:49. > :09:52.the fall and began to rise. message unlikely to keep him in the
:09:52. > :09:59.White House, so the President has been travelling around pushing his
:09:59. > :10:04.economic plan. What would a second administration do? It would raise
:10:04. > :10:10.taxes for wealthy Americans, invest in communication and infrastructure
:10:10. > :10:15.as well as alternative energy. The Obama faithful to not expect to
:10:15. > :10:21.return to the magic of 2008. They just want to avoid disappointment.
:10:21. > :10:25.He has a good vision and I like his wife and family. It could have been
:10:25. > :10:30.a lot worse is a tough sell. That is undoubtedly the message of
:10:30. > :10:39.President Obama Collingwood Magpies first term. What does one do here