:00:03. > :00:13.the home of Paula Broadwell. Those are the latest headlines. Now
:00:13. > :00:17.
:00:18. > :00:22.it is time for World Business Report.
:00:22. > :00:28.The headlines: Greece is being made to wait by its creditors. Vital
:00:28. > :00:34.bail out funds will be delayed by another week. As Italy's biggest
:00:34. > :00:39.bank, UniCredit, recovered from last year's shocking losses?
:00:39. > :00:49.Japanese consumers are tightening their purse-strings among gloomy
:00:49. > :00:51.
:00:51. > :00:55.economic conditions. The weight for vital new funds
:00:55. > :01:00.continues for the great government. It had hoped that part -- passing a
:01:00. > :01:07.new budget would persuade its international lenders to hand over
:01:07. > :01:12.30 billion euros. Late on Monday, eurozone finance ministers say they
:01:12. > :01:17.will meet again on November 20th and take a final decision then.
:01:17. > :01:22.Greece urgently needs the money to pay its bills. User Rome ministers
:01:22. > :01:32.want Greece to implement promised reforms. -- eurozone. On the plus
:01:32. > :01:34.
:01:34. > :01:40.side, they will be given an extra two years to meet the budget goals.
:01:40. > :01:43.Give us more detail on what was established yesterday. I think the
:01:43. > :01:47.two-year extension was something that was widely expected and it is
:01:47. > :01:51.good news. It means the pain will be eased over the short-term. It
:01:51. > :01:58.means it would take a bit more effort to get to where you are at
:01:58. > :02:03.the end of the day, because there will be more money needed ahead at
:02:03. > :02:10.some point in order to achieve the targets at a later date. And we
:02:10. > :02:18.need to keep Greece financed for slightly longer. That means
:02:18. > :02:22.slightly more expensive overall. It will have to raise some money. More
:02:22. > :02:27.importantly, it will have to look at the whole debt restructuring,
:02:27. > :02:33.which is an issue. But there have been some positive developments.
:02:33. > :02:36.There is a very immediate issue, in what the government is going to be
:02:36. > :02:45.doing with some of the debt repayments that will be due this
:02:45. > :02:53.week. They will now be able to breed -- rollover some of the
:02:53. > :03:00.Treasury bills. So they established how to meet the payment. The next
:03:00. > :03:07.summit is the 20th. What will be established then? Will they get to
:03:07. > :03:11.the point where they can say we can release the next tranche of money?
:03:11. > :03:15.There should be some agreement on that. It will not be released
:03:15. > :03:19.immediately. If they do not have to look at the bail out package and
:03:19. > :03:28.add extra money, if Greece is allowed to raise the money in a
:03:28. > :03:33.different way, it may not have to go through all the things that
:03:33. > :03:37.would delay the process. Nevertheless, it looks like the
:03:37. > :03:44.payment itself is not going to come immediately. That is crucial for
:03:44. > :03:53.Greece. There was a 31 billion euros, which should have been paid
:03:53. > :03:57.in February. The banks cannot land and the contractor is in Greece
:03:57. > :04:02.have not been paid, the government owes them a lot of money. -- the
:04:02. > :04:06.contract does. The head of the IMF was speaking and she has raised
:04:06. > :04:16.concerns about how they fit a rout of the restructuring of debt for
:04:16. > :04:20.Greece in the long-term. -- how they figured out. The real question,
:04:20. > :04:25.if it is not growing, it is going to see a fall in GDP. The debt
:04:25. > :04:31.repayments are going to be very significant. The deficit is still a
:04:31. > :04:35.big problem. What the IMF is saying, the debts which are going to be
:04:35. > :04:40.rising, is unsustainable. There is nothing there to underpin an
:04:40. > :04:50.improvement. It has been delayed in terms of a decision and that will
:04:50. > :04:54.be a problem. Let's take you to Italy, because
:04:54. > :04:59.the biggest bank there, UniCredit, is releasing its latest set of
:04:59. > :05:05.results. The markets will be very interested. Has this bank managed
:05:05. > :05:08.to recover from its crisis this time last year, when it reported a
:05:08. > :05:12.staggering $10.5 billion loss. It provoked a panic over whether it
:05:12. > :05:18.and other Italian banks will ask for a bail out, as Spanish banks
:05:18. > :05:23.have already done so. When the bid is baked in Italy, the
:05:23. > :05:33.reserve's third largest economy, reported a billion dollar last, it
:05:33. > :05:34.
:05:34. > :05:39.cent fear down the spines of the financial markets. One neuron,
:05:39. > :05:44.UniCredit has pegged its costs and its losses. It managed to raise
:05:44. > :05:51.$9.5 billion of new capital. It may have escaped a one storm, only to
:05:51. > :05:57.be sailing into a fresh one, caused by the lack of Braughing. --
:05:57. > :06:07.borrowing. Revenues are coming down. They need to convince people that
:06:07. > :06:13.it has changed. It would eat up all of their profits and throw them
:06:13. > :06:23.back into a loss. A key problem for the entire banking sector is the
:06:23. > :06:24.
:06:24. > :06:29.sharp raised in bad loans. They rose 6%. -- the sharp rise. The
:06:29. > :06:36.worry is that rising losses caused by back but it may overwhelm
:06:36. > :06:46.Italy's smaller banks, causing them to seek a bail out. -- caused by
:06:46. > :06:50.bad loans. They are left looking at the Italian state, saying, help us.
:06:50. > :06:54.The European Central Bank may be alarmed at the prospect of a cash
:06:54. > :07:01.crisis, but it is having to fight so many other financial fires in
:07:01. > :07:06.Greece, Portugal, Ireland and Spain, that the smouldering problems of
:07:06. > :07:16.Italy's banking have been let into the home government.
:07:16. > :07:26.
:07:26. > :07:34.suffering from weakness. It is not surprising to hear that Japanese
:07:34. > :07:38.people are feeling quite worried about their finances. That is right.
:07:38. > :07:43.Consumers are tightening their purse-strings. Households are
:07:43. > :07:48.holding the most cash since 2005, amid the grim economic conditions
:07:48. > :07:52.in the world's third-biggest economy. Data shows sliding
:07:52. > :07:56.consumption which makes up nearly two-thirds of the economy,
:07:56. > :08:03.contributing to the contraction in the past quarter. Private
:08:03. > :08:06.consumption is down by 1.4%. It has now dropped for two consecutive
:08:06. > :08:14.quarters, the first back-to-back decline since the global financial
:08:14. > :08:18.crisis. People have no incentive to spend. They are not sure about
:08:18. > :08:26.future job security. Many big firms are cutting jobs and training
:08:26. > :08:31.salaries. Renaissance electronics is planning to cut thousands of
:08:31. > :08:35.jobs. A maker of electronic components is shedding 1,000
:08:36. > :08:41.domestic positions. Sharp and Sony posted record losses and they are
:08:41. > :08:49.cutting jobs and production lines. Large businesses have also cut
:08:49. > :08:53.worker bonuses. One economist who I spoke to, the end of subsidies and
:08:53. > :08:57.the looming sales tax increase, it is also making people more
:08:57. > :09:07.pessimistic. They are putting their money in savings accounts with low
:09:07. > :09:08.
:09:08. > :09:12.rates. One of Microsoft's most powerful
:09:12. > :09:19.executives, Steven Sinofsky, is leaving the company with immediate
:09:19. > :09:26.effect. He was head of the Windows software unit, and worse head of
:09:26. > :09:32.Windows 8. Microsoft did not say why he left. -- was the head.
:09:32. > :09:38.Staying with Microsoft, its Halo 4 Videogram launched up sales of $220
:09:38. > :09:43.million. -- video game. It took Microsoft Game Studios more than
:09:43. > :09:49.three years to develop the game. A markets are not happy about the