20/09/2012 World Business Report

arrested on suspicion of conspiracy. Those of the letters had fines. --

latest headlines. Now it is time It will come to World Business

Report. Headlines: Spain does to the bond markets in a key test of

confidence as it resists calls for a financial rescue. Chinese leaders

meet in Brussels amid a backdrop of slowing global growth. The

eurozone's business sector continues to contract. Can

Germany's export machine survive Spain is facing a key test of

investor confidence again today. It is trying to borrow 4.5 billion

euros in an auction of three and ten-year bonds. Madrid is hoping to

to be Leader do they fall in borrowing costs. -- hoping to take

advantage of a fall. Spain is reluctant to call for help. The

interest on its investments remain at affordable levels. How long can

the Prime Minister keeps on stalling before the market's call

his bluff? Wispy to an economics Most are saying that this bond sale

will probably go well. The point is that everybody believes time is

running out. The first sale went well. The interest rate was

bearable. I do not think the markets are taking to which

immediately. It is not a worrying the art -- the economy are worrying.

issue was successful yesterday. The government is being financed at a

bearable interest rates. The markets are not putting any

pressure at the moment. It must give the Spanish government some

breathing space. What you think will happen in the months t

Will the President have to give in and accept conditions attached to

health -- help from the ECB. In the end they wi end they wi end they wi

minister. He hopes he can do it and have enough. We didn't know how it

is going to work. The trouble now is suddenly political. They re

Catalo Cataloa. The

Catalonia. The Catalonian so appalling oe. They have Ie. They have

blaming the Spanish government for the fiscal arrangements. They are

speaking of independence. Suddenly the whole t the whole t

the whole tcally politically charged. From your

point of viish government managing this crisis? Do

you feel that they're getting it right? They do need some financial

help and the future, but many say they are pushing through some

private sec difficult measures. It is the

strongly. Our balance-of-payments is any imbalance. We are exporting

as much as we are importing. The Spanish government have taken

measures to slowly and not deep enough. They either have to do was

on their own accord or have the European Union bail them out.

you. We wil you. We wil option. It option. It

will be get will be getting an indication of

the health of the reserve's private sector as well. The data for

Germany, France and the currency region as a whole will come out. It

is expected to show looking clo

looking closely at figures for Germany. Can it keep exporting as

its neighbours slump? When it comes to keeping growth going, Germany

has long been head and shoulders secret is tmall and

medium-size companies have retained and bills on their manufacturing

their way out of EU wrote trouble. This toy factories were the largest

of its kind still manufacturing in southern Ge

southern Geis toys here and exports 70% of it --

of production. The analyst euro uncertainty is a source of

retailers w frustration. If anything, it is the retailers wr experiencing

the most problems. Will people make delay buying a car or Redbridge,

they will not stop buying a toy It is perhaps surprising to see

that the company is still increasing sales in credit crunch

countries like Spain. In countries lot because you have a lot of

unemployment, we have growth there. The balance seems to be tipping

running running in Europe. Manufacturing in

the Europe means that you are independent of the currency. We

want top quality and we avoid high quantities later than ordering in

the Far East. We're fairly immune against knock-off products. Not all

German companies have such export Germany needs more growth nearer to

The all-important trade relationship between Europe and

China is to put the agenda today. The Chinese premier

Brussels. Tis visiting Brussels. Trade with Europe has

ballooned. ballooned. pore. An importan An importan, isn't it?

Absolutely. Two-way trade between the EU and China is worth the 560

billion US dollars. That is a lot of money. Te

issues will issues will be the slowing economic

concerns of concerns of the tensions in the

South China South China Sea between Japan and

expressed concern about the EU economic slowdown. It has offered

help in resolving the debt crisis. At the same time, at home, it has

been forced to take steps

steps to sustain us. The Premier of China is set to reiterate that

Beijing is read to continue investing in eurozone debt markets

evaluating evaluating the rest. They also be

some discussion and disputes on an EU anti-dumping investigation for

solar panels dominated by Chinese exporters. It is about

strengthening trade relationships between the EU and the mainland.

Very briefly, we have an idea of how factories are doing. Fill us in.

Manufacturing growth is slowing. The pace of the slowdown is

stabilising. The September number contraction. The index has remained

below 50 since August. Beijing has unveiled a wrath own initiatives.

coming out on 1st October when Beijing unveils its BMI data.

you. Delicars. Yesterday Japan initiated Issue