:00:05. > :00:15.arrested on suspicion of conspiracy. Those of the letters had fines. --
:00:15. > :00:17.
:00:17. > :00:23.latest headlines. Now it is time It will come to World Business
:00:23. > :00:33.Report. Headlines: Spain does to the bond markets in a key test of
:00:33. > :00:40.confidence as it resists calls for a financial rescue. Chinese leaders
:00:40. > :00:44.meet in Brussels amid a backdrop of slowing global growth. The
:00:44. > :00:54.eurozone's business sector continues to contract. Can
:00:54. > :00:58.
:00:58. > :01:03.Germany's export machine survive Spain is facing a key test of
:01:03. > :01:12.investor confidence again today. It is trying to borrow 4.5 billion
:01:12. > :01:20.euros in an auction of three and ten-year bonds. Madrid is hoping to
:01:20. > :01:28.to be Leader do they fall in borrowing costs. -- hoping to take
:01:28. > :01:34.advantage of a fall. Spain is reluctant to call for help. The
:01:34. > :01:37.interest on its investments remain at affordable levels. How long can
:01:37. > :01:47.the Prime Minister keeps on stalling before the market's call
:01:47. > :01:51.
:01:51. > :01:56.his bluff? Wispy to an economics Most are saying that this bond sale
:01:56. > :02:06.will probably go well. The point is that everybody believes time is
:02:06. > :02:12.
:02:12. > :02:19.running out. The first sale went well. The interest rate was
:02:19. > :02:28.bearable. I do not think the markets are taking to which
:02:28. > :02:38.immediately. It is not a worrying the art -- the economy are worrying.
:02:38. > :02:40.
:02:40. > :02:43.issue was successful yesterday. The government is being financed at a
:02:43. > :02:47.bearable interest rates. The markets are not putting any
:02:47. > :02:55.pressure at the moment. It must give the Spanish government some
:02:55. > :02:57.breathing space. What you think will happen in the months t
:02:57. > :03:06.Will the President have to give in and accept conditions attached to
:03:06. > :03:16.health -- help from the ECB. In the end they wi end they wi end they wi
:03:16. > :03:16.
:03:16. > :03:23.minister. He hopes he can do it and have enough. We didn't know how it
:03:23. > :03:30.is going to work. The trouble now is suddenly political. They re
:03:30. > :03:35.Catalo Cataloa. The
:03:35. > :03:43.Catalonia. The Catalonian so appalling oe. They have Ie. They have
:03:43. > :03:46.blaming the Spanish government for the fiscal arrangements. They are
:03:46. > :03:49.speaking of independence. Suddenly the whole t the whole t
:03:49. > :03:53.the whole tcally politically charged. From your
:03:53. > :03:58.point of viish government managing this crisis? Do
:03:58. > :04:01.you feel that they're getting it right? They do need some financial
:04:01. > :04:07.help and the future, but many say they are pushing through some
:04:08. > :04:16.private sec difficult measures. It is the
:04:16. > :04:21.strongly. Our balance-of-payments is any imbalance. We are exporting
:04:21. > :04:29.as much as we are importing. The Spanish government have taken
:04:29. > :04:36.measures to slowly and not deep enough. They either have to do was
:04:36. > :04:46.on their own accord or have the European Union bail them out.
:04:46. > :04:46.
:04:46. > :04:48.you. We wil you. We wil option. It option. It
:04:48. > :04:53.will be get will be getting an indication of
:04:53. > :04:57.the health of the reserve's private sector as well. The data for
:04:57. > :05:01.Germany, France and the currency region as a whole will come out. It
:05:01. > :05:05.is expected to show looking clo
:05:05. > :05:11.looking closely at figures for Germany. Can it keep exporting as
:05:11. > :05:21.its neighbours slump? When it comes to keeping growth going, Germany
:05:21. > :05:21.
:05:21. > :05:24.has long been head and shoulders secret is tmall and
:05:24. > :05:33.medium-size companies have retained and bills on their manufacturing
:05:33. > :05:37.their way out of EU wrote trouble. This toy factories were the largest
:05:37. > :05:42.of its kind still manufacturing in southern Ge
:05:42. > :05:46.southern Geis toys here and exports 70% of it --
:05:46. > :05:54.of production. The analyst euro uncertainty is a source of
:05:54. > :05:59.retailers w frustration. If anything, it is the retailers wr experiencing
:05:59. > :06:09.the most problems. Will people make delay buying a car or Redbridge,
:06:09. > :06:16.
:06:16. > :06:20.they will not stop buying a toy It is perhaps surprising to see
:06:20. > :06:27.that the company is still increasing sales in credit crunch
:06:27. > :06:35.countries like Spain. In countries lot because you have a lot of
:06:35. > :06:40.unemployment, we have growth there. The balance seems to be tipping
:06:40. > :06:44.running running in Europe. Manufacturing in
:06:44. > :06:54.the Europe means that you are independent of the currency. We
:06:54. > :06:55.
:06:55. > :07:04.want top quality and we avoid high quantities later than ordering in
:07:04. > :07:14.the Far East. We're fairly immune against knock-off products. Not all
:07:14. > :07:21.German companies have such export Germany needs more growth nearer to
:07:21. > :07:26.The all-important trade relationship between Europe and
:07:26. > :07:29.China is to put the agenda today. The Chinese premier
:07:29. > :07:39.Brussels. Tis visiting Brussels. Trade with Europe has
:07:39. > :07:40.
:07:40. > :07:48.ballooned. ballooned. pore. An importan An importan, isn't it?
:07:48. > :07:55.Absolutely. Two-way trade between the EU and China is worth the 560
:07:55. > :07:59.billion US dollars. That is a lot of money. Te
:07:59. > :08:03.issues will issues will be the slowing economic
:08:03. > :08:07.concerns of concerns of the tensions in the
:08:07. > :08:13.South China South China Sea between Japan and
:08:14. > :08:18.expressed concern about the EU economic slowdown. It has offered
:08:18. > :08:20.help in resolving the debt crisis. At the same time, at home, it has
:08:21. > :08:30.been forced to take steps
:08:30. > :08:34.steps to sustain us. The Premier of China is set to reiterate that
:08:34. > :08:38.Beijing is read to continue investing in eurozone debt markets
:08:38. > :08:42.evaluating evaluating the rest. They also be
:08:42. > :08:49.some discussion and disputes on an EU anti-dumping investigation for
:08:49. > :08:52.solar panels dominated by Chinese exporters. It is about
:08:52. > :08:58.strengthening trade relationships between the EU and the mainland.
:08:58. > :09:05.Very briefly, we have an idea of how factories are doing. Fill us in.
:09:05. > :09:15.Manufacturing growth is slowing. The pace of the slowdown is
:09:15. > :09:17.
:09:17. > :09:27.stabilising. The September number contraction. The index has remained
:09:27. > :09:36.below 50 since August. Beijing has unveiled a wrath own initiatives.
:09:36. > :09:44.coming out on 1st October when Beijing unveils its BMI data.
:09:44. > :09:49.you. Delicars. Yesterday Japan initiated Issue