:00:05. > :00:15.Church's governing session. Now for the latest financial news
:00:15. > :00:20.
:00:20. > :00:23.Welcome to World Business Report. Here are the headlines: Moving the
:00:24. > :00:29.debt mountain - agreement proves elusive for lenders to Greece on
:00:29. > :00:34.how to reduce its debt pile. And Japan posts its worst October
:00:34. > :00:38.trade figures in more than three decades.
:00:38. > :00:48.And Hewlett-Packard's shares plunged 12% in the US after the
:00:48. > :00:54.
:00:54. > :00:59.firm says autonomy is only worth a Once again they met and once again
:00:59. > :01:05.they failed to come to a compromise in the early hours of this morning.
:01:05. > :01:09.Jean-Claude Juncker said the talks, which lasted nearly 12 hours, would
:01:09. > :01:14.reconvene on Monday. The finance ministers and IMF are struggling to
:01:14. > :01:18.agree on ways to make Greece's debt mountain sustainable in the long-
:01:18. > :01:27.term. Agreement on this issue is needed for the group of creditors
:01:27. > :01:33.to pay Greece its next batch of rescue loans. I am joined by a dull
:01:33. > :01:37.guest at -- by our guest. It is exhausting, isn't it? It is. Talk
:01:37. > :01:43.us through this latest hurdle. Why can they not overcome their
:01:43. > :01:50.differences? What you had last week is an agreement to expand the time
:01:50. > :01:57.horizon from Twenty20, to 2022, for Greece to achieve a certain target
:01:57. > :02:00.of debt to GDP, which was the 120 %. The IMF is really strong on that.
:02:00. > :02:05.By delaying that deadline you are giving a little bit of room for
:02:05. > :02:11.breathing for Greece. We are adding 15 billion euros of additional debt
:02:11. > :02:16.needed in order to do this. I think what we are seen here is really a
:02:16. > :02:26.disagreement between Christine Lagarde and Europe on this because
:02:26. > :02:27.
:02:27. > :02:33.of the conditions that are attached to the extra debt. I think what we
:02:33. > :02:36.are seeing here is clearly there will be more negotiation and also
:02:36. > :02:42.by Monday -- had three by Monday they will have a clear path of
:02:42. > :02:46.additional conditions that go along with his extension of the deadline.
:02:46. > :02:49.At this point, all the lenders are at pains to say they are actually
:02:49. > :02:54.quite pleased to have Greece has been doing lately, hence they have
:02:54. > :02:59.the extra time. They are seen Greece made significant changes. It
:02:59. > :03:03.is not about Greece this time it, is it? I think that is really an
:03:03. > :03:07.important point. What you have seen is some improvement in competitive,
:03:08. > :03:11.-- competitiveness, some improvement of sweat. For the first
:03:11. > :03:16.time we have three months of positives, which is really
:03:16. > :03:21.important. There has been a lot of discussion about austerity not
:03:21. > :03:25.working. Actually, this could be the beginning of it working. On one
:03:26. > :03:28.hand he did not want to drop this. I think that is the IMF's view. On
:03:29. > :03:35.the other hand, giving them a little bit of breathing Room is
:03:35. > :03:41.probably wise. As ever. Thank you very much. I will let you go away
:03:41. > :03:48.and read today's papers. We have to move on because the
:03:48. > :03:53.Japanese yen and today is -- today has fallen to a seven-month low.
:03:53. > :03:59.The country released trade figures that were much worse than expected.
:03:59. > :04:02.We cross to AirAsia business Harbour in Singapore. In a way we
:04:02. > :04:08.are not surprised to hear things are tough in Japan. But it is worse
:04:08. > :04:11.than expected, isn't it? That is right. Amongst the worst October
:04:11. > :04:21.figures in some three decades. These exports falling for a fifth
:04:21. > :04:24.
:04:24. > :04:29.month. The trade deficit is at $6.7 billion up from a year ago.
:04:29. > :04:37.Shipments are falling over 6% in October. Exports to China in
:04:37. > :04:42.particular declining over 11 %. Very bad figures there. Essentially
:04:42. > :04:47.it was the territorial dispute with China that has turned a lot of
:04:47. > :04:52.sales. The EU has been heard by the continuing debt crisis. Japan's
:04:52. > :04:56.economy is heavily reliant on exports and the slowdown bend is
:04:56. > :05:01.hurting its growth. Analysts are saying that the uncertain global
:05:01. > :05:05.economic conditions are also affecting it. Japan's exports may
:05:05. > :05:10.continue to be weak in the coming months. The data comes just weeks
:05:10. > :05:14.after Japan reported that its economy contracted in the July-
:05:14. > :05:19.September period. As you mentioned, after this release of the figures,
:05:19. > :05:23.the yen fell to a seven-month low, which ironically has helped export
:05:23. > :05:28.reliant stocks climbed on the markets today. This is despite the
:05:28. > :05:33.fact that this is the St -- these are the same companies that are
:05:33. > :05:37.worst hit in this data. Watchdogs in the US and UK have the
:05:37. > :05:43.job of figuring out who was to blame for the software scandal that
:05:43. > :05:47.has rocked Silicon Valley. Shares in Hewlett-Packard plunged 22% on
:05:47. > :05:55.Tuesday following its disclosure it made a loss of $8.8 billion on the
:05:55. > :06:00.value of a British company bourse last -- it bought last year. A year
:06:00. > :06:05.ago he unpacked cardboard autonomy for just over $11 billion. --
:06:05. > :06:09.Hewlett-Packard port. The company says that autonomy had engaged in
:06:09. > :06:14.disclosure failures and at right misrepresentations. It has now
:06:14. > :06:18.referred the deal to the serious Fraud Office in London and the
:06:18. > :06:22.Securities and Exchange Commission in the US. The chief executive
:06:22. > :06:27.mention the allegations about autonomy at a press conference.
:06:27. > :06:29.senior executive, a member of the team, came forward to inform us
:06:29. > :06:34.about certain things he was very worried about in terms of
:06:34. > :06:40.accounting improprieties, disclosure failures and outright
:06:40. > :06:48.misrepresentations. We launched an investigation led by Price
:06:48. > :06:51.Waterhouse Coopers and uncovered a whole host of very concerning
:06:51. > :06:56.accounting improprieties and misrepresentations. The founder of
:06:56. > :07:00.autonomy, who was also the boss of the company when it was taken over,
:07:01. > :07:06.is saying mismanagement of the firm by its new owners was to blame for
:07:06. > :07:10.the decline in its value. It has managed the company very badly. It
:07:10. > :07:14.lost around half of the staff before I left. The Hall of the
:07:14. > :07:19.management team. The value of that company has now fallen and they
:07:19. > :07:22.have been forced to write it off. I think this is a way of distracting
:07:22. > :07:29.from the management problem. Today's the day they are announcing
:07:29. > :07:33.the worst results in the 70-year history of the business.
:07:33. > :07:37.Can Europe before a space programme? Many would argue the
:07:37. > :07:41.carried overwhelming debt crisis means the answer is a firm note, at
:07:41. > :07:45.least for now. Ministers in charge of space activities within the 20
:07:45. > :07:51.European Space Agency member-states and Canada seem to think so. They
:07:51. > :07:55.are meeting in Naples to decide on future space projects and proposed
:07:55. > :08:05.investments. Let's go live to Strasbourg and speak to Professor
:08:05. > :08:07.
:08:07. > :08:16.water pages. -- water Peters. Why should Europe in its best -- invest
:08:16. > :08:26.in space now? First of all, space technology has a long lead time. It
:08:26. > :08:28.
:08:28. > :08:34.takes 10-20 years before technology is ready to be launched into space.
:08:34. > :08:39.If you want to stay competitive in 10 or 12 years from now we have to
:08:39. > :08:45.continue to invest into the technology which will be ready for
:08:45. > :08:49.us in the future. But surely it is quite clear, given the fact that
:08:49. > :08:55.many economies in Europe are asking for financial bail-outs, that the
:08:55. > :09:05.money is not there right now. money is restricted. I think what
:09:05. > :09:08.
:09:08. > :09:13.they are discussing in Naples is with the limited amount of money
:09:13. > :09:21.what are the points that we should put our emphasis on in order to
:09:21. > :09:26.ensure competitiveness of an industry which is a sector that is
:09:26. > :09:33.giving a lot of return in the long- term GDP. Not on the short-term,
:09:33. > :09:40.but in long-term there is a factor of at least three or four.
:09:40. > :09:47.We will have to be that there, but thank you for your argument.
:09:47. > :09:52.Now, interesting market figures. Japan is up by 0.7%, which is good
:09:52. > :09:57.news. It would seem that the investors are shrugging off those
:09:57. > :10:02.trade figures that we have spoken about. Exports have tumbled in
:10:02. > :10:07.Japan. Having said that, let's have a look at the end, which may well
:10:07. > :10:12.explain why the Nikkei 225 is trading high. The yen has weakened