25/09/2012

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:00:02. > :00:12.Those are the latest headlines from BBC News.

:00:12. > :00:16.

:00:16. > :00:20.with news, Hello and welcome to World Business

:00:20. > :00:23.Report with me, Alice Baxter. European Central Bank chief Mario

:00:23. > :00:27.Draghi goes on a charm offensive in Germany. But will they accept his

:00:27. > :00:33.plan that the ECB should buy the debt of troubled euro governments

:00:33. > :00:36.without limit? One of the world's largest crew

:00:36. > :00:42.companies Carnival, released a financial results for the summer

:00:43. > :00:47.season. We will get an indication of how the company's fared since

:00:47. > :00:52.that fatal accident involving the cost Concorde ya. I'm in Singapore,

:00:52. > :01:02.and the world's largest maker of computer components reopening its

:01:02. > :01:05.

:01:05. > :01:10.had stopped operations. It had no impact on supplies.

:01:10. > :01:14.Hello, there. Now the President of the European Central Bank, Mario

:01:14. > :01:20.Draghi, starts a charm offensive in Germany today. He indicated that

:01:20. > :01:23.the ECB would buy the debted euro government's difficulty without

:01:23. > :01:26.limit, Germany was against it, in a minority of one. That is even

:01:26. > :01:31.though Germany stands to pick up the biggest bill. To try the allay

:01:31. > :01:38.fears, Mr Dragy has said that he would address the German parliament

:01:38. > :01:44.and today he addresses the German Confederation of Industry.

:01:44. > :01:52.The new high rise headquarters of the European Central Bank - topped

:01:52. > :01:58.off only last week, at least 300 Will the EC Will the EC

:01:58. > :02:03.overbudget with bailouts? The ECB is ready to do whatever it takes to

:02:03. > :02:10.preserve the euro. Whatever it takes - that phrase

:02:10. > :02:14.made German business shudder. The this business park in Berlin is

:02:14. > :02:24.a huge cluster of high-tech companies. This is Germany's

:02:24. > :02:25.

:02:25. > :02:29.in 450 companies, virtually a high- tech small town. New yarm industry,

:02:29. > :02:34.but old German wor -- German industry, but old German worries -

:02:34. > :02:38.inflation. They fear that ECB bond- buying adds up to printing money.

:02:38. > :02:43.The question I will be asking Mr Draghi, how will you be able to put

:02:43. > :02:47.the genie back into the botle? genie of inflation is all the talk

:02:47. > :02:52.at the big conference of German business leaders, now underway.

:02:52. > :02:56.These are the people who own and run German industry. They want

:02:56. > :03:00.answers. It would be wonderful if Mario Draghi could explain the

:03:00. > :03:06.logic behind the ECB's recent policy moves, and I think there is

:03:06. > :03:11.a certain misconception in Germany about the role of Central Banks,

:03:11. > :03:21.given that the Bundesbank quite legitimately has a point of view

:03:21. > :03:21.

:03:21. > :03:25.German public. On the other hand, wider responsibility. I think it

:03:25. > :03:31.would be helpful if Mario Draghi could explain he is not acting in

:03:31. > :03:35.contradiction to the Bundesbank. the new ECB rises, Germans fear it

:03:35. > :03:45.is overpowering their Bundesbank values. Can Mario Draghi reassure

:03:45. > :03:48.

:03:48. > :03:54.them? Electronics manufacturer Foxconn has reopened its Taiwan

:03:54. > :03:58.factory after Tuesday's forced closure. Ricoh Hizon is in

:03:58. > :04:04.Singapore. Are we clearer as to why this fight broke out amongst

:04:04. > :04:08.workers? Well, it was a brawl, Alice, and at

:04:08. > :04:14.this point, Foxconn officials have said that it has resumed production

:04:14. > :04:18.less than 24 hours after a ride that involved about 2,000 workers.

:04:18. > :04:22.And the spokesman also said that despite the one-day closure, they

:04:22. > :04:27.had spare inventories, and the there was no impact on supplies to

:04:27. > :04:31.clients. But that I did not say any further what -- but they did not

:04:31. > :04:35.say any further what started this whole riot. This particular

:04:35. > :04:42.facilitate, which is located at Taiwan, in northern China, and

:04:42. > :04:45.employs close to 80,000 workers and manufacturers, all the consumer

:04:45. > :04:51.electronic parts, position mouldings and components for

:04:51. > :04:54.Apple's latest iPhone size. Foxconn, the world's largest maker of can

:04:54. > :04:57.computer component, has head issues over the last couple of years. It

:04:57. > :05:00.ha 9 been criticised over conditions after a series of

:05:01. > :05:06.workers committed suicide over the past two years.

:05:06. > :05:09.And Ricoh, moving on to another story now. Shares in Glencore, the

:05:09. > :05:16.commodities trader. They have been suspended in Hong Kong. Do we know

:05:16. > :05:21.why? Well, it could be Xtrata-related.

:05:21. > :05:24.We have to wait until the market closes in a few hours. The

:05:24. > :05:28.commodities trader in short statement did not say much. It only

:05:28. > :05:32.said it will soon release price- sensitive information. And this

:05:32. > :05:36.move follows a ruling last week by Britain's take-over regulator,

:05:36. > :05:42.which gives Xtrata a one-week extension to decide whether or not

:05:42. > :05:44.to accept a revised Glencore offer of $3f billion. We have to wait

:05:44. > :05:53.until after the market closes in Hong Kong.

:05:53. > :05:57.Just a few hours to go, then. Ricoh, many thanks.

:05:57. > :06:00.Now, one of the world's largest cruise companies Carnival will

:06:00. > :06:04.shortly be releasing its financial results for the summer. That is the

:06:04. > :06:10.peak season for cruises. It will give the best indication yet of how

:06:10. > :06:14.the company's fared since the fatal accident involving the Concorde ya.

:06:14. > :06:19.It is operated by costta. It was wrecked in the Mediterranean at the

:06:19. > :06:25.start of this year. Jeremy Howell has this report.

:06:25. > :06:30.Last January, the captain of the Costa Concorde ya sailed his ship

:06:30. > :06:38.too close to an island in Italy and drove it on to rocks, 32 people

:06:38. > :06:45.died. In the if financial quarter, since the disaster, it saw its

:06:45. > :06:48.bookings dry up. It hz been filling its ships by offering big discounts.

:06:48. > :06:51.The reputation is clearly damaged in most markets, particularly Italy,

:06:51. > :06:55.its major market. The only way of getting people back on the ships

:06:55. > :06:59.was through price. They lowered the price, they got

:06:59. > :07:03.the bookings back. Obviously, they had lost a couple of months of

:07:03. > :07:05.bookings in the immediate aftermath when they effectively stopped all

:07:05. > :07:10.their advertising on the assumption that people would not come,

:07:10. > :07:14.whatever they offered. Cruise holidays are normally seen

:07:14. > :07:18.as bargains t. Generally, speaking they are cheaper than holidays

:07:18. > :07:23.taken in hotels. Even so, the economic downturn in Europe means

:07:23. > :07:27.fewer and fewer people can afford the tickets. Add to that the now

:07:27. > :07:35.permanently high cost of fuel and it is small wondering that cruise

:07:35. > :07:39.operators, like Carnival, feeling their profit margins squeeze, are

:07:39. > :07:43.looking beyond markets of Europe to the feisty markets of east Asia.

:07:43. > :07:47.You can move your assets whether you think you will make the most

:07:47. > :07:51.money with cruise lines. Therefore, if the Mediterranean, if Europe is

:07:51. > :07:55.looking bleak because of the economic downturn, well, you can

:07:55. > :07:59.plan at least a year or two ahead to send them around to Asia, where

:07:59. > :08:04.the emerging markets could be just what you need to boost your revenue.

:08:04. > :08:10.But it may not be sensible to start moving cruise fleets eastward until

:08:11. > :08:16.the markets are ready for them. It could take a few years to persuade

:08:16. > :08:20.East Asian consumers to adopt that peculiarly Western pleasure - the

:08:20. > :08:23.holiday cruise. Now to other business stories

:08:23. > :08:27.making headlines. The International Monetary Fund will cut its forecast

:08:27. > :08:30.for global growth this year. Christine Lagarde, the IMF managing

:08:30. > :08:35.director, said the global economy is held back by the eurozone debt

:08:35. > :08:39.crisis and the uncertainty of US government spending.

:08:39. > :08:44.Defence ministers from Germany, Britain and France will meet this

:08:44. > :08:48.week to discuss a potential merger of Defence firms EAE and BAe and

:08:48. > :08:54.EADS. A report said that the three will meet in simple prus on

:08:54. > :08:58.Wednesday or Thursday, creating the world's biggest aerospace form. But

:08:58. > :09:03.the strategic importance of the firm could cause political

:09:03. > :09:06.difficulties. Scandal racked Olympus and three of

:09:06. > :09:12.its former top executives have pleaded guilty in court over

:09:12. > :09:18.charges they covered up losses worth $1.7 billion. Stemming from

:09:18. > :09:21.bad investments. Well, former President Kukukawa poolgdzed in

:09:21. > :09:25.toky District Court and said this - Tokyo District Court and said that

:09:25. > :09:28.he would take full responsibility for the crime which came to light

:09:29. > :09:32.when his British successor blew the when his British successor blew the

:09:32. > :09:37.whistle. In Asia, stocks are down across all