:00:05. > :00:15.film in 2015. Now for the latest financial using
:00:15. > :00:25.
:00:25. > :00:29.World Business Report. -- News in. A very warm welcome it to you.
:00:29. > :00:34.Paying today or paying tomorrow - the dilemma facing Portugal's
:00:34. > :00:37.Parliament as it floats on controversial tax rises.
:00:37. > :00:47.Open for business - US financial markets resume trading as people
:00:47. > :00:54.
:00:54. > :00:58.Portugal's Parliament is set to vote on the 2013 budget. The
:00:58. > :01:01.Finance Bill it includes unprecedented tax rises. The
:01:01. > :01:06.measures are part of a drive to meet targets to reduce Portugal's
:01:06. > :01:10.large debt. On Tuesday the Prime Minister told deputies more was
:01:10. > :01:14.needed. A full review of government services. Those comments could
:01:14. > :01:17.further anger critics who are already planning protests outside
:01:17. > :01:22.the Parliament. Our correspondent has more.
:01:22. > :01:25.The Prime Minister opened the Budget debate with a reiteration of
:01:25. > :01:32.the right-of-centre government's determination to keep Portugal
:01:32. > :01:36.performance on track. There is, he told deputies, no alternative.
:01:36. > :01:42.TRANSLATION: An extension of the programme implies more money, more
:01:42. > :01:48.time to have larger deficits. Had you finance this series of larger
:01:48. > :01:51.deficits over time? -- How do you. A second bail-out would obviously
:01:51. > :01:55.be needed. The Government acknowledges the
:01:55. > :02:00.Budget will bring enormous tax increases. Equivalent to a month's
:02:00. > :02:03.salary in many cases. Many observers feel a recessionary
:02:03. > :02:08.spiral, with austerity sapping economic growth and tax receipts
:02:08. > :02:12.and inflating the budget deficit that it is supposed to be cutting.
:02:12. > :02:18.The Prime Minister on Tuesday held out the hope of the tax burden
:02:18. > :02:20.being gradually reduced. TRANSLATION: From 2013 we have to
:02:20. > :02:27.introduce spending cuts which in the long-term should allow us to
:02:27. > :02:31.reverse some of the tax rises in this budget bill. The opposition
:02:31. > :02:37.Socialists and two smaller leftist parties agreed on one thing at
:02:37. > :02:41.least -- hope his fame. The radical Left bloc reiterated its view that
:02:41. > :02:46.Portugal will have to renegotiate its debts and suspects the
:02:46. > :02:51.Government might already be thinking about seeking more aid.
:02:51. > :02:55.TRANSLATION: They have completely lost any chance of returning to the
:02:55. > :03:01.markets in September, 2013. Are they already renegotiating a second
:03:01. > :03:05.bail-out? After a string of NT austerity protests in recent weeks,
:03:05. > :03:08.more a scheduled to coincide with the budget vote right in front of
:03:08. > :03:12.the Parliament building. The Prime Minister's latest call for a
:03:12. > :03:16.complete review of all the state's functions, including welfare,
:03:16. > :03:23.health and education, he shall have to fire up the government's
:03:23. > :03:27.opponents even further. -- is sure Now to Greece with the government
:03:27. > :03:33.is also expected to present its budget to Parliament on Wednesday.
:03:33. > :03:37.The Finance Bill will include spending cuts and higher taxes
:03:37. > :03:40.worth some 13.5 billion euros. On Tuesday the Prime Minister said he
:03:40. > :03:45.now had a sufficient backing from coalition parties to push through
:03:45. > :03:49.tough bridges. But the more controversial plans to make it
:03:49. > :03:54.easier to hire and fire workers will be presented to Parliament in
:03:54. > :04:02.a separate Bill next week. Portugal and Greece and not and the
:04:02. > :04:06.government slashing spending. Austerity as it places right across
:04:06. > :04:13.the eurozone. Win family stop spending, wealth shrinks, plunging
:04:13. > :04:17.the economy into recession. More than 18 million people are out of
:04:17. > :04:21.work in the eurozone. Fresh figures due later on when state are
:04:21. > :04:28.expected to show yet another rise. -- Wednesday.
:04:28. > :04:31.When they had careers, now they wait in mind for state benefits.
:04:31. > :04:36.The euro debt crisis and the recession has killed employment for
:04:36. > :04:41.millions. First in southern Europe and now it is spreading into the
:04:41. > :04:44.relatively prosperous north. Up to one in four Europeans are now
:04:44. > :04:50.looking for work. The rise in joblessness across the eurozone has
:04:51. > :04:54.been relentless. Companies have needed to cut costs. The only way
:04:54. > :05:00.they can do it is to get rid of staff. Public sector job losses
:05:00. > :05:03.have a long way to go. EU institutions and national
:05:03. > :05:07.governments are trying but they are finding it near-impossible to
:05:07. > :05:12.counter austerity measures with a renewed emphasis on programmes to
:05:12. > :05:17.stimulate employment and economic growth. The focus is on youth and
:05:17. > :05:25.apprenticeship style training. you were to make the EU more
:05:25. > :05:34.competitive in the international economy we need to rebuild their
:05:34. > :05:38.institutions, vocational training. But skills are of limited use if
:05:38. > :05:44.they cannot be taken up by employers. Joblessness is both a
:05:44. > :05:50.symptom of the fall in global demand and a direct cause of
:05:50. > :05:53.European -- European's' waning spending power. I think employers
:05:53. > :05:57.were hoping that they could hold on to some of their workers. There
:05:57. > :06:01.were hopes that the recession would not be long lived. There are also
:06:01. > :06:04.some government incentives for firms to have it -- called on to
:06:04. > :06:07.workers. More recently I think it has become clear that it will be a
:06:07. > :06:12.long-lived recession in the eurozone. It is spreading to the
:06:12. > :06:15.larger economies and there is no clear way out of it for the time
:06:15. > :06:19.being. That means that employers are just realising that they need
:06:19. > :06:25.to cut back. They need to save money. This will last for a long
:06:25. > :06:28.time and the workforce is to beat. Empty production plants and idle
:06:28. > :06:34.production sites are a stark reminder of the latest drop in
:06:34. > :06:41.confidence. When it finally comes, economic recovery may be bumpy and
:06:41. > :06:44.slow to reabsorb laid off workers. The European Bank for
:06:44. > :06:49.Reconstruction and Development specialises in providing help and
:06:49. > :06:56.support to devastated European economies. Jonathan Charles is
:06:56. > :07:01.director of communications there. Jobless figures are expected to be
:07:01. > :07:05.gloomy yet again. How bad do we expect these to be? I think within
:07:05. > :07:09.the EU there is no doubt that unemployment is getting worse. It
:07:09. > :07:16.is hardly surprising that when you see in Spain and Greece you have on
:07:16. > :07:20.employment rights -- unemployment rates rising to 25%. These will
:07:20. > :07:24.increase. All these things are feeding into the European figures.
:07:24. > :07:27.The question now is, what are people scene when they look ahead
:07:28. > :07:32.to 2013? I think a lot of companies are taking decisions which will
:07:32. > :07:36.involve more job losses because they are seen 2013 has not been a
:07:36. > :07:40.year of strong recovery. In the -- economic indicators not looking
:07:40. > :07:46.great. What are you expecting to do about it? What is your position in
:07:46. > :07:51.terms of this path that we seem to be going down? Are you focusing on
:07:51. > :08:01.reform...? If you look at the countries that we operate in, which
:08:01. > :08:01.
:08:01. > :08:06.include some eurozone countries, they are imposing austerity, but
:08:06. > :08:10.what we are saying to them is do not waste 2013. Make sure that as
:08:10. > :08:15.you prepare for possible recovery in 2014 day you are really
:08:15. > :08:18.reforming new economies. Then it just concentrate on austerity alone.
:08:18. > :08:23.Get economic reforms into place which will make you more dynamic
:08:23. > :08:28.when the recovery comes. We invest about 9 billion euros a year on
:08:28. > :08:31.behalf of the international community. We probably need to use
:08:31. > :08:35.some of that money towards orientating growth. It cannot just
:08:35. > :08:43.be austerity on its own. There has to be a growth element in economic
:08:43. > :08:46.policy because austerity on its own is not the only solution. And your
:08:46. > :08:50.President spoke in the past about encouraging private investment in
:08:50. > :08:54.south-eastern Europe as well. inevitable. The international
:08:54. > :09:00.community cannot do it on just public sector money. The private
:09:00. > :09:05.sector is going to have to invest if the economy is to recover. What
:09:05. > :09:08.we know is that the uncertainty feeds on itself. You have a lot of
:09:08. > :09:11.private company sitting on their hands and they are saying, what are
:09:11. > :09:16.we going to do? Should be taking investment decision or should we
:09:16. > :09:24.wait for things to improve? It is a vicious circle. If they do not make
:09:24. > :09:29.the investment decision, things will not improve.
:09:29. > :09:34.Yorke is again open for business on Wednesday after its longest forced
:09:34. > :09:38.to shut down since 9/11. -- New York. The Stock Exchange will
:09:38. > :09:42.resume trade. It is the last day of the month, a crucial time for
:09:42. > :09:47.investors to balance their books and carry out transactions before
:09:47. > :09:52.the resumption of normal trade. It is seen as vital for the health of
:09:52. > :09:55.global markets. Our correspondent has more.
:09:55. > :09:59.The city that never sleeps is strangely quiet. Many are still
:09:59. > :10:04.without power. At this tunnel which links Manhattan to Brooklyn, it is
:10:04. > :10:09.still under water. Recovery efforts are under way and businesses are
:10:09. > :10:15.trying to figure. One icon of American capitalism, the New York
:10:15. > :10:19.Stock Exchange, has said it hopes to open its building and is trading
:10:19. > :10:24.for this Wednesday. It was closed for two whole days because of
:10:24. > :10:29.weather and it is the first time bet that has happened since 1888.
:10:29. > :10:33.When it does reopen its doors it is likely to be emptier than usual.
:10:33. > :10:37.Electronic trading means that volumes may still be high, but many
:10:37. > :10:42.people who work there may have difficulty getting to their place
:10:42. > :10:46.of work. That is because although some buses will be running, the
:10:46. > :10:49.subways in this part of town are still very damaged. We saw one
:10:49. > :10:53.where the winds had ripped the tiles off the walls and there was
:10:53. > :10:58.still lots of water. Many other traders to work they also come from
:10:58. > :11:04.New Jersey. They were right on the path of the hurricane.
:11:04. > :11:10.Having a look at how the equity markets are doing this hour.
:11:10. > :11:19.Crossing first to Asia. As we can see it is a mixed group. The Nikkei