:00:04. > :00:13.than the speed of sound without an aircraft.
:00:13. > :00:17.Now it is time to get the latest financial news.
:00:17. > :00:23.Hello and welcome. You are watching World Business Report. The
:00:23. > :00:27.headlines: The IMF meets in Tokyo and slashes its global growth
:00:27. > :00:32.forecast, warning that the situation could get much worse.
:00:32. > :00:41.A massive security operation in Athens for the visit of Angela
:00:41. > :00:45.Merkel. I am Rico Hizon in Singapore. The
:00:45. > :00:55.stock price of HTC plunges are due to stiff competition from Samsung
:00:55. > :00:57.
:00:57. > :01:02.and Apple. Good to have you with us. We begin
:01:02. > :01:06.with a stark warning from the IMF. In its latest assessment of the
:01:06. > :01:10.global economy, it says unless Europe and the US address their
:01:10. > :01:14.financial problems, the global economy could going to an even
:01:14. > :01:24.steeper slowdown. It says confidence is being damaged which
:01:24. > :01:27.
:01:27. > :01:34.is affecting investment. It has lowered its global growth forecast.
:01:34. > :01:40.Tell us more about the concerns. The IMF sounded a cautionary note
:01:40. > :01:45.today. The risk to the recovery has increased. That is what they are
:01:45. > :01:53.saying. There are two reasons: In the eurozone and concerns about the
:01:53. > :01:59.US. Many people are talking about Italy and Spain at the moment. I
:01:59. > :02:05.had a chance to speak to the IMF's chief economist a short while ago.
:02:05. > :02:11.He spoke to me about Spain. Policy makers have said they do not yet
:02:11. > :02:21.been tend to ask for a bail-out. That is the decision for Spain to
:02:21. > :02:21.
:02:22. > :02:26.make. At this stage, given the interest rate, I understand. These
:02:26. > :02:31.are based on an assumption by investors that they will go into a
:02:31. > :02:37.programme. What is the IMF saying about emerging markets?
:02:37. > :02:43.If you look at advanced countries right now, growth forecasts are
:02:43. > :02:49.around 1.3 %. That is a fairly low level. In emerging countries, the
:02:49. > :02:54.picture was brighter. Growth of around 5.3 %. In China, 7.8 %
:02:54. > :03:01.forecast for this year. That forecast was cut. It is better than
:03:01. > :03:07.we are seeing any Burrell's. One of the concerns that was highlighted
:03:07. > :03:16.is that when you see the risks that play, it hits emerging countries
:03:16. > :03:21.when it comes to trade. There is a common factor which
:03:21. > :03:29.applies to the division of growth in most emerging countries and that
:03:29. > :03:33.is exports doing well. The striking thing is that when there is an
:03:33. > :03:40.effect on trade, there is an effect on exports from emerging countries.
:03:40. > :03:50.In China, from a Mathematica point of view, most what has happened can
:03:50. > :03:56.
:03:56. > :04:00.be attributed to lower exports. -- Mathematica. -- mathematic.
:04:00. > :04:05.message is, if decision-makers start doing a better job, worst-
:04:05. > :04:09.case scenarios may not become a reality. Angela Merkel is making
:04:09. > :04:14.her first trip to Athens since the crisis started three years ago.
:04:14. > :04:18.Many Greeks blame Germany for the austerity programmes that they are
:04:18. > :04:23.having to suffer. Both left-wing and right-wing parties are
:04:23. > :04:28.promising demonstrations. Police officers will stand by to keep
:04:28. > :04:33.order. The Greek Prime Minister says he will receive far as the
:04:33. > :04:37.leader of a friendly country. Age is no barrier to protest in Athens.
:04:37. > :04:42.Yesterday, these pensioners broke through police lines to demonstrate
:04:42. > :04:49.outside the offices of the EU. Many Greeks blame the EU for the
:04:49. > :04:53.austerity programme which includes cuts in pensions.
:04:53. > :05:00.TRANSLATION: They are taking our lives. They are trying to push us
:05:00. > :05:05.off a cliff. They do not need us because we do not produce cheaply.
:05:05. > :05:09.Given the satire reserved for Germany by the Greeks, it is clear
:05:09. > :05:14.why Angela Merkel has not been clear to visit greasiness. The
:05:14. > :05:20.German flag has been burned in the streets and Angela Merkel has been
:05:20. > :05:27.characterised as a Nazi in newspapers. The message today will
:05:27. > :05:32.be that Germany wants Greece to stay in the eurozone.
:05:32. > :05:37.There we want to express in public in Greece a degree of recognition
:05:37. > :05:42.for the huge amount of change that Greece has seen, at least when it
:05:42. > :05:46.comes to wage cuts and pensions. other words, the visit is largely
:05:46. > :05:51.symbolic. It would make no difference to a forthcoming
:05:51. > :05:56.decision on whether Greece will get the next slice of its bailout. That
:05:56. > :06:01.issue with Germany is still resolute.
:06:01. > :06:06.Greece could have serious problems without the bailout. The agreement
:06:06. > :06:14.is clear. Greece has to fulfil its commitment in order to get through
:06:14. > :06:19.the next phase. How the meeting with Antonis
:06:19. > :06:24.Samaras plays out back in Germany is also vital to Angela Merkel. She
:06:24. > :06:28.faces an election next year. She has been criticised for lack of
:06:28. > :06:35.direction on the issue of Europe. This is her chance to change that
:06:35. > :06:40.and his chance to win a more widespread sympathy for Greece.
:06:40. > :06:47.Thailand was my biggest maker of smart phones has seen its profits
:06:47. > :06:50.hammered. -- Thailand's biggest maker. HTC make phones for
:06:50. > :06:56.Microsoft and giggle as well as selling phones under their own
:06:56. > :07:01.brand name. -- Google. Why have they had a tough time?
:07:01. > :07:06.It is all because of the competition. Stiff competition,
:07:06. > :07:16.particularly from Samsung and Apple. There is a steep decline in profit
:07:16. > :07:16.
:07:16. > :07:23.and it is impacting their stock price. Net profit has fallen by
:07:23. > :07:31.almost 80 % from July to September compared to the same period last
:07:31. > :07:36.year. The Galaxy has come out for Samsung, the iPhone 5 for Apple.
:07:36. > :07:46.These factors are causing them problems. It has lost more than 50
:07:46. > :07:48.
:07:48. > :07:55.% of its share value. HTC has a contract. Apple are selling 5
:07:55. > :08:04.million iPhone 5s in its first week in the market. It is a strong debut.
:08:04. > :08:10.HTC, which makes many models, is being squeezed. They do not have
:08:10. > :08:14.the same resources to promote their handsets. It has recent strength in
:08:14. > :08:18.China where it is the only international brand with double-
:08:18. > :08:27.digit growth in market share. China is estimated to account for more
:08:27. > :08:30.than 50 % of HTC shipments and sales.
:08:30. > :08:33.The giant US aluminium maker, Alcoa reports quarterly profits later
:08:33. > :08:36.today. Profits are expected to shrink due to weak global metal
:08:36. > :08:40.prices. Alcoa is the first of the major US companies to report third
:08:40. > :08:43.quarter results. Many analysts expect to see weak profits due to a
:08:43. > :08:46.global slow down. Qatar Airlines is joining an alliance of airlines
:08:46. > :08:49.that includes British Airways and nine other carriers known as One
:08:49. > :08:54.World. Qatar will be able to code share, which means passengers can
:08:54. > :08:59.by a single ticket, which is valid for multiple airlines.
:08:59. > :09:02.American Airlines says its operational performance is
:09:02. > :09:06.improving at the recent problems. Dozens of flights had been
:09:06. > :09:11.cancelled because of loose seats. The company has been under
:09:11. > :09:17.bankruptcy protection since last November. They are in an ongoing
:09:17. > :09:23.dispute with their pilots. General Motors is in the news. They have
:09:23. > :09:29.been making headlines as well. They have got a technology centre in
:09:29. > :09:33.Detroit. It is new. It is part of their plan to develop their own
:09:33. > :09:41.technology after years of out to those in work. Over the next three-
:09:41. > :09:46.five years, 10,000 staff will be hired at four centres. Markets are
:09:47. > :09:51.myxoedema. Japan was close yesterday. -- markets are mixed