:00:02. > :00:12.the latest headlines. Now for the latest financial news in World
:00:12. > :00:17.
:00:17. > :00:20.Hello and welcome to World Business Report. I'm Sally Bundock.
:00:20. > :00:23.Japan's exporters experience their worst September for three decades,
:00:23. > :00:27.increasing the odds of a recession in the world's third largest
:00:27. > :00:37.economy. What will Yahoo's latest chief
:00:37. > :00:42.
:00:42. > :00:47.executive reveal about her plans Japan has posted its worst
:00:47. > :00:51.September trade figures in more than 30 years. Exports have been
:00:51. > :00:55.hit by hard by a lack of demand for Japanese goods, due to the global
:00:55. > :00:58.economic slowdown and a territorial dispute with China. The strength of
:00:58. > :01:01.the Japanese yen making their goods more expensive overseas also
:01:01. > :01:06.continues to take its toll on exporters in the world's third
:01:06. > :01:16.largest economy. Shipments slid by over 10% in September, from a year
:01:16. > :01:16.
:01:16. > :01:26.earlier. Our correspondent in Tokyo is Rupert Wingfield-Hays. We were
:01:26. > :01:30.not expecting good news but this is worse than we were expecting?
:01:30. > :01:36.Everybody was predicting that there would be a large trade deficit in
:01:36. > :01:40.September for Japan. They predicted export would fall by about 9%. But
:01:40. > :01:46.both the fall in exports and the rise in imports has exceeded those
:01:46. > :01:50.targets. We have seen more than a 10% fall in exports and a more than
:01:50. > :01:55.4% rise in imports. That is what has led to the record September
:01:55. > :02:02.trade deficit. The figures across the board are very bad. A 14% fall
:02:02. > :02:07.in exports to China, more than 20% fall in exports to the EU. And just
:02:07. > :02:11.a tiny 0.9% increase in exports to the US, despite the fact that the
:02:11. > :02:15.economy seems to be picking up there. The figures are very bad in
:02:15. > :02:20.September, largely because of the dispute between Japan and China.
:02:20. > :02:28.Any sign of that being resolved? Clearly it is hurting Japan in a
:02:28. > :02:33.major way. The immediate anger that we saw back in September with riots
:02:33. > :02:38.on the streets of China and the closing of Japanese factories has
:02:38. > :02:42.passed. But the political impasse between Japan and China has not
:02:42. > :02:47.passed. The governments are not talking to each other. This is a
:02:47. > :02:51.crisis that continues. Economists here today say that the figures are
:02:51. > :02:55.only the beginning. In fact, they say the October figures are likely
:02:55. > :03:01.to be worse, as people in China stop buying Japanese products,
:03:01. > :03:07.Japanese cars, electronics, things like that, in the aftermath of that
:03:07. > :03:17.crisis. What do economists say about the future? I have read this
:03:17. > :03:24.is Japan possibly heading back into recession. Yes. Economists predict
:03:24. > :03:28.the third... The final quarter of this year could see negative growth.
:03:28. > :03:33.That means Japan would fall back into recession. That could be the
:03:33. > :03:38.case by the end of this year. The government is responding. Today, a
:03:38. > :03:41.game called for the Bank of Japan to increase monetary easing. The
:03:41. > :03:45.Japanese government says it is preparing another package of
:03:45. > :03:49.measures, another stimulus package, to be launched by the end of the
:03:49. > :03:53.mark. But nobody thinks that will particularly change the direction
:03:53. > :03:58.of the Japanese economy. The likelihood is that Japan is heading
:03:58. > :04:05.back into recession. Thank you. As you can imagine, the markets are
:04:05. > :04:12.not taking this likely -- lightly. We will look at those numbers later.
:04:12. > :04:15.Among those revealing how they are doing today is Yahoo. Once again,
:04:15. > :04:18.the former online giant is expected to reveal a tough three months but
:04:18. > :04:22.investors are hoping its new chief executive, Marissa Meyer, will
:04:22. > :04:25.reveal more about her plans to turn around the company. When she was
:04:25. > :04:29.appointed as CEO just three months ago, hopes were high. Just 37-
:04:29. > :04:32.years-old, she came from Google and three weeks ago she became a mum.
:04:32. > :04:41.However, she is already back at work. Ben Thompson has more from
:04:41. > :04:44.New York. When Google's Marissa Meyer to win
:04:44. > :04:49.Yahoo through this year, she was the third chief-executive in less
:04:49. > :04:54.than 12 months. That stability -- that turbulence underlines how
:04:54. > :04:59.difficult it has been to turn their fortunes around. Once synonymous
:04:59. > :05:04.with the internet, their lead has been eclipsed by Google. It has
:05:04. > :05:08.also been squeezed by rivals in the news and sports market. Services it
:05:09. > :05:12.once relied on to drive uses to its pages. Nonetheless, investors are
:05:12. > :05:16.sticking with the stock. The share price over the past year it
:05:16. > :05:21.illustrates the turbulence of the departure of top executives and
:05:21. > :05:25.plans to cut 2000 jobs. But the share price is now back where it
:05:26. > :05:32.started the year. Investors are hoping that the new boss, won mac,
:05:32. > :05:37.can do what predecessors failed to do. -- Marissa Meyer. Give Yahoo a
:05:37. > :05:41.new lease on life. That will involve raising morale inside the
:05:41. > :05:45.company as well. After so much change, we over staff could be just
:05:45. > :05:50.as important as winning over the market. Investors will look for
:05:50. > :05:56.what are the kind of more long-term goals she has in store? Does she
:05:56. > :05:59.want Yahoo to focus on search? Does she want Yahoo to focus on
:05:59. > :06:03.entertainment? We do not have answers at the moment. Investors
:06:03. > :06:10.need more guidance about what the company is and which direction it
:06:10. > :06:14.is heading in. It all starts here we UN to a website. But much like
:06:14. > :06:20.its rivals, Yahoo is also struggling to adapt to changing
:06:20. > :06:25.market, as all of us access the internet on the move. Firms that
:06:26. > :06:35.rely on traffic and advertising revenue from those sides are
:06:36. > :06:49.
:06:49. > :06:59.Europe's biggest consumer goods manufacture will also report its
:06:59. > :07:00.third-quarter earnings. We will be looking at how it has coped in the
:07:01. > :07:04.downturn. Spanish Prime Minister Mariano
:07:04. > :07:07.Rajoy secured backing for his austerity drive in a vote in his
:07:07. > :07:10.home region of Galicia. The election in Galicia had been seen
:07:10. > :07:13.as a referendum on the Spanish government's handling of the
:07:13. > :07:15.eurozone crisis. The victory gives the Prime Minister some breathing
:07:15. > :07:17.space, after polls showing him losing support amid massive
:07:17. > :07:21.demonstrations against spending cuts in public services and
:07:21. > :07:24.successive tax hikes. Canada has blocked the takeover of
:07:24. > :07:28.Progress Energy Resources, saying the bid by Malaysia's state-owned
:07:28. > :07:31.Petronas is not in Canada's national interest. The deal is
:07:31. > :07:41.valued at $5 billion. The decision comes as the Canadian government is
:07:41. > :07:45.
:07:45. > :07:49.reviewing China's offer for Nexen. That deal is valued at $15 billion.
:07:49. > :07:54.Europe's money worries go beyond the debt crisis. This week,
:07:54. > :07:58.parliament is expected to vote for a 7% rise in the EU's overall
:07:58. > :08:01.budget for next year. The demand for more cash from hard-pressed
:08:01. > :08:05.member-states flies in the face of an earlier decision by national
:08:05. > :08:13.leaders to go in for some belt- tightening and limit the increase
:08:13. > :08:18.to under 3%. From building much needed new roads
:08:18. > :08:22.to restoring historic buildings, from building -- mending bridges to
:08:22. > :08:27.supporting farmers, EU projects reached parts of Europe where
:08:27. > :08:32.economic growth has stopped. But the spending increase of nearly 7%,
:08:32. > :08:36.reached by the EU Commission, has already been knocked back by cash-
:08:37. > :08:39.strapped countries as out of step with the times. The budget
:08:39. > :08:43.commissioner says in new spending is essential to counter austerity
:08:43. > :08:49.and is openly critical of member- states for trying to cut it.
:08:49. > :08:54.Council is ready to cut by 5 billion. Our proposal is precisely
:08:54. > :09:02.for areas with the greatest growth and jobs potential. And so there is
:09:02. > :09:05.a conflict. The European Commission is nervous about the impact of
:09:05. > :09:09.fiscal austerity. They are pushing for it because that is what
:09:10. > :09:13.powerful members of the EU want them to push for - Germany, the
:09:13. > :09:17.Netherlands, a couple of others. But they are conscious of the need
:09:17. > :09:21.to do something to offset the impact of this spending. One way of
:09:21. > :09:26.doing that is to boost spending through the EU budget. These are
:09:26. > :09:33.anxious times for any budgets that rely on continued EU funding. Cuts