:00:03. > :00:13.controversial issues within the Anglican community.
:00:13. > :00:14.
:00:14. > :00:21.Now it is time to all the latest financial news with Sally.
:00:22. > :00:25.A very warm welcome. Here are the headlines: Restructuring great debt.
:00:25. > :00:28.Eurozone finance ministers and the IMF try and resolve their
:00:28. > :00:34.differences and find a way to make Greece's debt mountain more
:00:34. > :00:39.manageable. And directing foreign investment
:00:39. > :00:44.falling due to slowing global economies.
:00:44. > :00:49.And the tech giant struggling with the decline of the PC era. Hewlett
:00:49. > :00:57.Packard and how it is dealing with the face of competition from smart
:00:57. > :01:01.friends. -- smart phones. How to make Greece's debt
:01:01. > :01:05.manageable, that'll be the question facing eurozone finance ministers
:01:05. > :01:10.and Christine Lagarde as they meet today to try and settle their
:01:10. > :01:19.differences. That agreement eluded them last week. Greece, meanwhile,
:01:19. > :01:24.is waiting for its next amount of aid. The argument is between the
:01:24. > :01:29.lenders, the IMF says its debts are now too large to meet its target.
:01:29. > :01:38.Germany is resisting any deal that would look like a fretted bailout.
:01:38. > :01:43.It later suggestion will hit private bondholders to Gen. --
:01:43. > :01:50.again. The credit ratings agency Moody's has downgraded France from
:01:50. > :01:59.its top rating. The country's debt has been reduced and Moody's has
:01:59. > :02:08.kept its negative outlook. Each has loomed the risk of a quick exit. --
:02:08. > :02:15.it has blamed. To put all this in perspective, I am joined by a
:02:15. > :02:19.European economist. Let us talk about this issue with a great debt.
:02:19. > :02:26.Eurozone finance ministers and the IMF discussing ways of sorting that
:02:26. > :02:34.out. What is different is that this time Greece has actually delivered
:02:34. > :02:42.what was required of them. Greece has done its part. It has continued
:02:42. > :02:46.with the aid for priests. Europeans do not want to cut Greece's debt.
:02:46. > :02:55.They do not want to forgo the money they have led. They think that
:02:55. > :03:00.Greece needs to deserve such a cut. The IMF thinks that Greece needs
:03:00. > :03:07.confidence that the country is sustainable. The problem should be
:03:07. > :03:12.sold now. That means there is a compromise. We will see if they can
:03:12. > :03:17.strike it today. It is between the lenders and not about Greece itself.
:03:17. > :03:24.In terms of finding that compromise, it is important that they do it
:03:24. > :03:30.quickly. If Greece's that are not seen as sustainable, it could cause
:03:30. > :03:33.problems for investors. It would be most beneficial for Greece and the
:03:33. > :03:40.financial markets. It would take the pressure off Greece for a long
:03:40. > :03:48.period of time. It would make the country look better. The European
:03:48. > :03:53.solution just stops the whole letters opened up. -- that house.
:03:53. > :03:59.This problem will resurface very soon. It will also keep the
:03:59. > :04:06.pressure on Greece to reform itself. Let us talk about the downgrade to
:04:06. > :04:12.France. That is significant. They were downgraded by Standard and
:04:12. > :04:20.Poor's in January. It is significant for France. In January,
:04:20. > :04:24.it was several countries. This one is just France. It comes just after
:04:25. > :04:28.the Economist published a legal paper saying that France was in
:04:28. > :04:33.trouble. Many would agree that France has not done what is
:04:33. > :04:37.required to make the country more competitive, to bring the borrowing
:04:37. > :04:42.of the government to sustainable levels. The government has done
:04:42. > :04:48.something. They have lower labour costs. That will improve
:04:48. > :04:56.competitiveness. Before they did that, all of the measures went in
:04:56. > :05:02.the wrong direction. Especially the labour market. This really targets
:05:02. > :05:11.France. But it hurts Europe as well. The rescue fund borrows on France's
:05:11. > :05:15.ratings. Very good perspective. Thank you for talking us through
:05:15. > :05:20.all those issues. We will be watching those meetings going on
:05:20. > :05:24.between finance ministers and the IMF. We will keep you up-to-date.
:05:24. > :05:29.One of the biggest names in Silicon Valley, Hewlett-Packard, reports
:05:29. > :05:39.their earnings today. They will be expected to provide further
:05:39. > :05:40.
:05:40. > :05:48.evidence the PC era is in decline. PC sales are in trouble. Big
:05:48. > :05:55.trouble. Worldwide shipments fell over 8%. The sharpest decline since
:05:55. > :06:01.2001. That is hurting Hewlett- Packard. The country that has won
:06:01. > :06:05.the title of the world's number one PC maker. Now it is stuck with the
:06:05. > :06:10.business that is in decline. The problem is that consumer habits
:06:10. > :06:14.have changed. When it comes to keeping up with friends, surfing
:06:14. > :06:20.the internet, playing games, more of us are using smart phones and
:06:20. > :06:25.tablet computers. Weak results from rivals showed that the economy is
:06:25. > :06:33.not helping either. People are getting frugal. The error in the
:06:33. > :06:39.spending what they have to. -- they are only spending. They could
:06:39. > :06:44.upgrade their equipment. But they're not. The company is hoping
:06:44. > :06:49.on its New see an actor in two years to be its saviour. She has
:06:49. > :06:52.already cut thousands of jobs and shook up the structure. But it is
:06:52. > :07:00.taking longer then investors would like. The share price has fallen
:07:00. > :07:06.more than 40%. The decline in the PC, the decline in printing, those
:07:06. > :07:13.things are out of control. Unfortunately for shareholders,
:07:13. > :07:21.there are big changes. For those hoping for an improvement in the
:07:21. > :07:25.company's earnings, they may have more bad news.
:07:26. > :07:30.Foreign direct investment into China fell by almost 2.5% in the
:07:30. > :07:37.first ten months of this year. That is the longest run of decline in
:07:37. > :07:47.three years. To make sensible of this, we're going live to Singapore.
:07:47. > :07:49.
:07:49. > :07:52.Nice to see you. Why is this significant for China? That is
:07:52. > :07:57.because even though the government has been trying to balance its
:07:57. > :08:01.economic risk by trying to boost domestic consumption, the economy
:08:01. > :08:06.there remains rather vulnerable to external factors. We always talk
:08:06. > :08:11.about exports from China being very crucial to China's economic growth.
:08:11. > :08:16.They still live. But for the factories in China, investment by
:08:16. > :08:21.foreign companies are still very important. This was more evidence
:08:21. > :08:26.of a slowing global economy. That meant that companies have not been
:08:26. > :08:32.spending as much money in China as they used to. Take Europe for
:08:32. > :08:39.example. Investments fell 5% for the first ten months. It was not
:08:39. > :08:47.just Europe. Investments from Asia almost fell 5%. Investment from the
:08:47. > :08:50.US actually rose. China is still on course to attract more than $100
:08:50. > :08:56.billion in direct foreign investment this year. That is Laura
:08:56. > :08:59.compared to last year's figure. But that was a record amount. It is
:08:59. > :09:04.still attracting enough foreign direct investment. It seems that
:09:04. > :09:08.the pace has been slowing down. There was more evidence today about
:09:08. > :09:16.the impact of the fractured relationship between Japan and
:09:16. > :09:23.China. That is right. There was a massive drop in investment from
:09:23. > :09:28.Japan into China. It fell with and 32%. In September, Japan's
:09:28. > :09:36.investment was up 25%. Those territorial disputes are affecting
:09:36. > :09:39.investment. This was shortly after this very violent anti- Japan
:09:39. > :09:43.protests resulting in Japanese companies having to hold their
:09:43. > :09:49.operations in China. We are now seeing the investments moving to
:09:49. > :09:54.other parts of Asia. Time to show you the markets in
:09:54. > :10:00.Asia briefly. All of these markets are slightly higher. It is off the
:10:00. > :10:05.back of the news out of the State yesterday. Sales of homes in the