09/10/2012 World Business Report

than the speed of sound without an aircraft.

Now it is time to get the latest financial news.

Hello and welcome. You are watching World Business Report. The

headlines: The IMF meets in Tokyo and slashes its global growth

forecast, warning that the situation could get much worse.

A massive security operation in Athens for the visit of Angela

Merkel. I am Rico Hizon in Singapore. The

stock price of HTC plunges are due to stiff competition from Samsung

and Apple. Good to have you with us. We begin

with a stark warning from the IMF. In its latest assessment of the

global economy, it says unless Europe and the US address their

financial problems, the global economy could going to an even

steeper slowdown. It says confidence is being damaged which

is affecting investment. It has lowered its global growth forecast.

Tell us more about the concerns. The IMF sounded a cautionary note

today. The risk to the recovery has increased. That is what they are

saying. There are two reasons: In the eurozone and concerns about the

US. Many people are talking about Italy and Spain at the moment. I

had a chance to speak to the IMF's chief economist a short while ago.

He spoke to me about Spain. Policy makers have said they do not yet

been tend to ask for a bail-out. That is the decision for Spain to

make. At this stage, given the interest rate, I understand. These

are based on an assumption by investors that they will go into a

programme. What is the IMF saying about emerging markets?

If you look at advanced countries right now, growth forecasts are

around 1.3 %. That is a fairly low level. In emerging countries, the

picture was brighter. Growth of around 5.3 %. In China, 7.8 %

forecast for this year. That forecast was cut. It is better than

we are seeing any Burrell's. One of the concerns that was highlighted

is that when you see the risks that play, it hits emerging countries

when it comes to trade. There is a common factor which

applies to the division of growth in most emerging countries and that

is exports doing well. The striking thing is that when there is an

effect on trade, there is an effect on exports from emerging countries.

In China, from a Mathematica point of view, most what has happened can

be attributed to lower exports. -- Mathematica. -- mathematic.

message is, if decision-makers start doing a better job, worst-

case scenarios may not become a reality. Angela Merkel is making

her first trip to Athens since the crisis started three years ago.

Many Greeks blame Germany for the austerity programmes that they are

having to suffer. Both left-wing and right-wing parties are

promising demonstrations. Police officers will stand by to keep

order. The Greek Prime Minister says he will receive far as the

leader of a friendly country. Age is no barrier to protest in Athens.

Yesterday, these pensioners broke through police lines to demonstrate

outside the offices of the EU. Many Greeks blame the EU for the

austerity programme which includes cuts in pensions.

TRANSLATION: They are taking our lives. They are trying to push us

off a cliff. They do not need us because we do not produce cheaply.

Given the satire reserved for Germany by the Greeks, it is clear

why Angela Merkel has not been clear to visit greasiness. The

German flag has been burned in the streets and Angela Merkel has been

characterised as a Nazi in newspapers. The message today will

be that Germany wants Greece to stay in the eurozone.

There we want to express in public in Greece a degree of recognition

for the huge amount of change that Greece has seen, at least when it

comes to wage cuts and pensions. other words, the visit is largely

symbolic. It would make no difference to a forthcoming

decision on whether Greece will get the next slice of its bailout. That

issue with Germany is still resolute.

Greece could have serious problems without the bailout. The agreement

is clear. Greece has to fulfil its commitment in order to get through

the next phase. How the meeting with Antonis

Samaras plays out back in Germany is also vital to Angela Merkel. She

faces an election next year. She has been criticised for lack of

direction on the issue of Europe. This is her chance to change that

and his chance to win a more widespread sympathy for Greece.

Thailand was my biggest maker of smart phones has seen its profits

hammered. -- Thailand's biggest maker. HTC make phones for

Microsoft and giggle as well as selling phones under their own

brand name. -- Google. Why have they had a tough time?

It is all because of the competition. Stiff competition,

particularly from Samsung and Apple. There is a steep decline in profit

and it is impacting their stock price. Net profit has fallen by

almost 80 % from July to September compared to the same period last

year. The Galaxy has come out for Samsung, the iPhone 5 for Apple.

These factors are causing them problems. It has lost more than 50

% of its share value. HTC has a contract. Apple are selling 5

million iPhone 5s in its first week in the market. It is a strong debut.

HTC, which makes many models, is being squeezed. They do not have

the same resources to promote their handsets. It has recent strength in

China where it is the only international brand with double-

digit growth in market share. China is estimated to account for more

than 50 % of HTC shipments and sales.

The giant US aluminium maker, Alcoa reports quarterly profits later

today. Profits are expected to shrink due to weak global metal

prices. Alcoa is the first of the major US companies to report third

quarter results. Many analysts expect to see weak profits due to a

global slow down. Qatar Airlines is joining an alliance of airlines

that includes British Airways and nine other carriers known as One

World. Qatar will be able to code share, which means passengers can

by a single ticket, which is valid for multiple airlines.

American Airlines says its operational performance is

improving at the recent problems. Dozens of flights had been

cancelled because of loose seats. The company has been under

bankruptcy protection since last November. They are in an ongoing

dispute with their pilots. General Motors is in the news. They have

been making headlines as well. They have got a technology centre in

Detroit. It is new. It is part of their plan to develop their own

technology after years of out to those in work. Over the next three-

five years, 10,000 staff will be hired at four centres. Markets are

myxoedema. Japan was close yesterday. -- markets are mixed