:00:05. > :00:15.vigil has been held. They are the headlines from BBC World News. Time
:00:15. > :00:16.
:00:16. > :00:20.for the money news. Here is Sally and World Business Report. Hello.
:00:20. > :00:26.Welcome to World Business Report. Here are the headlines:Greece is
:00:26. > :00:30.expected to grind to a standstill as trade unions call the first
:00:30. > :00:34.general strike since the Conservative-led Coalition came to
:00:34. > :00:41.power. Results from Lloyds of London should show an improvement
:00:41. > :00:50.after the massive losses of last year. From Singapore - Toyota, and
:00:50. > :00:58.Nissan are reducing production in China. AntiJapan sentiments over
:00:58. > :01:03.the China Sea impacts sales. Good to have you with us. Once again
:01:03. > :01:07.there are scenes of the widespread protests against austerity across
:01:07. > :01:14.Europe. Thousands of protesters gathered in Madrid to vent their
:01:14. > :01:19.anger over cut backs and tax hikes. Riot police fired rubber bullets on
:01:19. > :01:24.the protesters. The latest demonstration comes two days before
:01:24. > :01:28.the Spanish Government is due to unveil its budget. It is likely to
:01:28. > :01:31.contain further cut backs. Many economies have been saying they'll
:01:31. > :01:36.need to approach European authorities for a bailout. The
:01:36. > :01:41.focus moves to Greece, where unions plan to bring the country to a
:01:41. > :01:47.standstill. Civil servants, teachers, lawyers, and others have
:01:47. > :01:52.been called out on a 24 hour strike. This is the first general strike
:01:52. > :01:57.that the three-party Coalition government had to say since taking
:01:57. > :02:04.option, despite warnings from the head of the International Monetary
:02:04. > :02:09.Fund that delays in reforming the economy is growing a shortfall in
:02:09. > :02:13.Greece. I'm joined by a senior lectureer at Cardiff Business
:02:13. > :02:19.School. Thank you for being on the programme. The strikes today - how
:02:19. > :02:23.effective will they be, do you think, in impacting with the
:02:23. > :02:29.Coalition government will decide in terms of future cuts. Participating
:02:29. > :02:35.in the strike is comprehensive. I do not think that this strike will
:02:35. > :02:39.have any impact whatsoever in the short term. There may be an impact
:02:39. > :02:43.which will be political. Greece is now governed by a Coalition, and
:02:43. > :02:49.some parties may take notice, but I think they have little room to
:02:49. > :02:56.mover. My expectation is that the policy will not change as a result
:02:57. > :03:02.of the strike. In terms of room for manoeuvre, they are due more money
:03:02. > :03:06.next month. That is only on Monday. They are due more money from the
:03:06. > :03:11.bailout creditors soon, yet they have to be specific before they get
:03:11. > :03:18.the money about future cuts which we'll expect today or tomorrow in
:03:18. > :03:23.terms of an announcement. Exactly. The Greek Government agreed with
:03:23. > :03:28.the troika to cut expenses. The discussion among the partners of
:03:28. > :03:34.the Greek Coalition is where to make the cuts. Unfortunately, these
:03:34. > :03:38.cuts are necessary. Greece is findinging itself in this present
:03:38. > :03:42.situation as a result of overspending. It is harsh and
:03:42. > :03:46.unpleasant and difficult for large sections of the population. These
:03:46. > :03:51.cuts are necessary for the sake of the Greek economy, first and
:03:51. > :03:55.foremost. How do you think this will play out. They are necessary,
:03:55. > :04:01.and they won't get future money unless they implement the cuts.
:04:01. > :04:05.There's a lot of unrest and a Coalition government which is not
:04:05. > :04:11.strong. I think that the government has a clear mandate from the
:04:11. > :04:15.general election held in June, to keep Greece in the Eurozone. That
:04:15. > :04:20.was the dilemma presented to the Greek people. They gave an
:04:20. > :04:26.endorsement of the political party. There's political legitimacy. On
:04:26. > :04:30.the other hand you are right. The cuts will not be easily accepted by
:04:30. > :04:37.large parts of the population. The Government has to stay strong, stay
:04:37. > :04:47.the course. On the other hand our European partners should help by
:04:47. > :04:51.saying clearly that as a result of these reforms, Greece will stay in
:04:51. > :04:58.the Eurozone. Bring us up to date on the Prime Minister's plea for
:04:58. > :05:05.time from the EU, IMF and ECB. Do they have more time or is it still
:05:05. > :05:11.being negotiated? It is at the stage of negotiation. It's not
:05:11. > :05:15.talked among the top politicians, I think there is a chance that they
:05:15. > :05:22.will get additional time. Thank you very much for being on the
:05:22. > :05:27.programme from the Cardiff Business School. Lloyds of London, it's the
:05:27. > :05:34.largest insurance market is likely to have cashed in on a quiet spell.
:05:34. > :05:39.Last year was the second most expensive on record for insurers,
:05:39. > :05:45.with claims $20 billion following floods in Australia and Thailand,
:05:45. > :05:53.an earthquake in New Zealand, and Japan's earthquake and tsunami.
:05:53. > :06:01.This year, in comparison, it's been virtually disaster free. But the
:06:01. > :06:07.insurer has not scopd the Eurozone crisis. It may have judged the --
:06:07. > :06:14.escaped the Eurozone crisis. It may have escaped the crisis, and Lloyds
:06:14. > :06:18.moved out of the bond market to limit risks. It's concerned over
:06:19. > :06:25.action taken by the Central Bank. The low int The low inte environment
:06:26. > :06:31.may be good for the banking sector, but it makes it difficult for the
:06:31. > :06:35.insurers to make money on assets they hold. It's not just the euro
:06:35. > :06:38.currency causing a headache. Insurance terms are caught up in a
:06:38. > :06:44.crackdown caused by banking scandals. Lloyds says it's not only
:06:44. > :06:49.unfair, but damaging to its business. Under rules drafted by
:06:49. > :06:56.regulators by the G20 group of countries, any financial country
:06:56. > :06:59.big enough to destablise the economy could be forced to hold an
:06:59. > :07:06.additional capital buffer. concern is they are getting tarred
:07:06. > :07:09.with the same brush as the banks. They haven't caused the financial
:07:09. > :07:13.crisis. They were able to provide cover where it was necessary to
:07:13. > :07:18.people that needed it throughout the financial crisis, and they feel
:07:18. > :07:23.that they are to be tarred with the same brush, to be implemented in --
:07:23. > :07:27.implicated in the scandal and have regulations imposed upon them is
:07:27. > :07:33.unfair. Insurers are better at handling risk. With the threat of a
:07:33. > :07:40.break-up of the Eurozone, and extreme weather patterns, it could
:07:40. > :07:48.only take a major disaster to see a repeat of record claims of 2011.
:07:48. > :07:54.The Japanese autogoints, Toyota and Nissan are re-- giants, Toyota and
:07:54. > :07:58.Nissan are reducing production. We have more from Singapore. We were
:07:58. > :08:04.saying this week that they had reopened the factories, they were
:08:04. > :08:09.closed and demand has gone down for the girls. -- for the cars. That's
:08:10. > :08:15.right, the row between the Japanese and Chinese is impacting sales of
:08:15. > :08:18.carmakers. That's why they are scaling back output in China. They
:08:18. > :08:23.are adjusting production and will halt production from October. Media
:08:23. > :08:29.reports are saying that they will stop all vehicle exports to China
:08:29. > :08:33.from Japan. As for Nissan, they said the factory was run by a joint
:08:33. > :08:38.venture on the mainland and it will suspend operations from 27
:08:38. > :08:44.September - tomorrow. That's three days earlier than a scheduled
:08:44. > :08:50.holiday from 30 September to 7 October. Other factories closed
:08:50. > :08:56.factories for days, as they became embroiled in the antiJapan protest
:08:56. > :09:05.over the dispute between the islands on the China Sea. And the
:09:05. > :09:12.dispute that is heating up. It is heightening friction between the
:09:12. > :09:17.they are ramping up a challenge by filing a trade complaint in
:09:17. > :09:23.Brussels. It is on top of a complaint, and accuses China's
:09:23. > :09:28.solar panel makers of receiving illegal subsidies, and they opened
:09:28. > :09:33.an investigation against Chinese companies for selling products for
:09:33. > :09:39.less money overseas. This could sour trade relations between the EU,
:09:39. > :09:45.and China, worth more than $500 billion. Thank you. And the markets
:09:45. > :09:52.in Asia today, I have to say, are not having a good session. Almost a
:09:52. > :09:56.2% lose in Japan - on news that the Telecom survey shows that sentiment
:09:56. > :10:00.among manufacturers has fallen significantly. We had the Federal