:00:06. > :00:16.father. Time for the latest business news.
:00:16. > :00:19.
:00:19. > :00:24.Welcome to world business news. -- World Business Report.
:00:24. > :00:34.Another round in the battle over Anke bonuses. Today, the UK will
:00:34. > :00:34.
:00:34. > :00:38.try to water down European plans to curb the bonus pay-outs. -- bonus
:00:38. > :00:46.pay-outs. Can the flat mining European market for cars be saved
:00:46. > :00:51.by the new Peugeot executive? -- flatlining. And we focus on China.
:00:51. > :00:56.What will the new leadership mean for the world's second largest
:00:56. > :01:01.economy? Should banks be able to pay their staff what they like? To
:01:01. > :01:09.some extent, it depends on whether Dee Why in Brussels or in London.
:01:09. > :01:14.Today, the UK will try to limit regulations on a salary 40
:01:14. > :01:19.executives. There is growing anger at the sums they can command on top
:01:19. > :01:29.of basic pay. In London, many argue that the measures risky driving
:01:29. > :01:32.
:01:32. > :01:36.bankers a broad. -- overseas. Goodbye to the big bonus. Clumsy
:01:36. > :01:42.regulation will only make top bankers Walker, according to the
:01:42. > :01:45.City of London. Brussels says it is a sensible move to curb the sort of
:01:45. > :01:49.risk taking that led to the financial crisis. Regardless of how
:01:49. > :01:52.you feel, there are still many unanswered questions about how the
:01:52. > :01:57.limits will be applied and calculated and who would have to
:01:57. > :02:04.comply from as early as the month of May this year. Since the peak
:02:04. > :02:08.bonus year of 2008, strides have been made to link rewards with
:02:08. > :02:13.performance and they are still hoping that George Osborne can pull
:02:13. > :02:17.something out today. There is certainly some concern that one of
:02:17. > :02:23.the impact of this piece of legislation will be an increase in
:02:23. > :02:30.base salaries. We saw that happening in 2009, 2010, and
:02:30. > :02:35.clearly, that concern exists. is not actually what banks want.
:02:35. > :02:40.What they don't want is increased fixed costs. They want to be able
:02:40. > :02:46.to adjust pay for performance. Curbing City bonuses is a point of
:02:46. > :02:54.principle for money and there is a belief that the UK will try to
:02:54. > :03:00.extract concessions. One might be allowing institutions to pay larger
:03:00. > :03:05.bonuses but defer them up over many years.
:03:05. > :03:10.The Geneva Motor Show opens today. It is traditionally one of the more
:03:10. > :03:14.glamourous auto shows, a place to display luxury models and concept
:03:14. > :03:22.vehicles. This year, the dire state of the European auto industry will
:03:23. > :03:29.hang heavy. ProShare has been one of the carmakers most hit. --
:03:29. > :03:38.Peugeot. It will be not in two models this year. We spoke with the
:03:38. > :03:45.company's head of branding. We were too dependent on Europe. In 2009,
:03:45. > :03:49.we were selling and the 24% of our vehicles in Europe. With this model,
:03:49. > :03:54.we want a global vehicle. We will manufacture in France and also
:03:54. > :03:59.China and Brazil. It has been developed for all of the markets in
:03:59. > :04:07.the world. There has been a lot written in the international media
:04:07. > :04:13.about the cost of labour in France. Compare that with Spain, the Czech
:04:13. > :04:16.Republic, Slovakia. How do you tell you investors that producing in
:04:16. > :04:20.France is the right decision? difficult because we have to
:04:20. > :04:27.convince the French government to change some things. They have
:04:27. > :04:33.already put in place measures that will reduce our costs by 100
:04:33. > :04:38.million euros in 2014. This is not sufficient, however. The French
:04:38. > :04:44.government must also reduce labour costs by changing the way we
:04:44. > :04:50.finance social security. That is why we have explaining to the
:04:50. > :04:53.French government that it must do more to reduce labour costs in
:04:53. > :04:59.France. You received some criticism from the government when you
:04:59. > :05:02.decided to close... Some said that the rhetoric from certain ministers
:05:02. > :05:08.was irresponsible. Does the government better understand your
:05:08. > :05:15.difficulties now? Clearly, we and the government must work together
:05:15. > :05:20.because we are producing 60% of auto production in France. That is
:05:20. > :05:25.why we must work together to find the best solution. Today, the
:05:25. > :05:29.government agrees with what we are doing with regards a structuring
:05:29. > :05:33.plan. As you have been hearing, the National People's Congress has
:05:33. > :05:36.opened in Beijing. Thousands of delegates have gathered and over
:05:37. > :05:41.the next ten days, they will rubber-stamp government policy. The
:05:42. > :05:48.main event is the handing over of power to the new Communist Party
:05:48. > :05:53.leader, Xi Jinping. But today, the retiring premier, Wen Jiabao, has
:05:53. > :06:00.been speaking. He has announced a growth target of 7%. Thank you for
:06:00. > :06:07.joining us. There is an awful lot on the agenda over the next ten
:06:08. > :06:13.days. When we look at the economy, what will be most important? This
:06:13. > :06:18.year, it is important for us to know what the government target is
:06:18. > :06:21.and what kind of policies they have in mind and what kind of reform
:06:21. > :06:28.measures and structural change measures they have in place, at
:06:28. > :06:33.least for this year. The targets that you have mentioned and'
:06:33. > :06:38.economic policies, monetary and fiscal policy targets. The Budget
:06:38. > :06:48.and the structure of the Budget. Proposed areas for reform Ed for
:06:48. > :06:50.
:06:50. > :06:54.the next few days. -- over the next few days. In terms of reform, it is
:06:54. > :06:58.an enormous task. Structural reform, increasing social welfare and
:06:58. > :07:03.spending, bridging the gap between rich and poor, concerns like the
:07:03. > :07:12.environment... What will they address in terms of the long-term
:07:12. > :07:20.picture first? Right. In terms of what has got to be done, I think
:07:20. > :07:28.that they have to continue to reform... (INAUDIBLE). As well as
:07:28. > :07:32.fiscal reform and the financial market reform and so on. Of course,
:07:32. > :07:36.that is enormously difficult, especially for a new government,
:07:36. > :07:40.which was still make sure they have consensus support within the party
:07:41. > :07:45.and within the government. Four this year, we believe they will
:07:45. > :07:51.address some of the social issues first. The social concerns that
:07:51. > :07:57.have upset the population, including heavy pollution,
:07:57. > :08:06.corruption issues and social spending. Healthcare, insurance,
:08:06. > :08:16.pensions and also issues relating to some of the land related
:08:16. > :08:17.
:08:17. > :08:22.problems in rural settlements. In addition, also to start adjusting
:08:22. > :08:27.energy prices, which has already been announced to some extent. And
:08:27. > :08:32.income inequality. Raising the minimum wage and spending more on
:08:33. > :08:38.the poor. Building more schools and so on and so forth. Thank you.
:08:38. > :08:48.Truly an enormous agenda. Thank you. And apologies if we lost the Tour
:08:48. > :08:53.
:08:53. > :08:56.de Gay briefly. Obviously -- the audio briefly. Cyprus has agreed to
:08:56. > :09:02.an international evaluation of its efforts to tackle money laundering
:09:02. > :09:06.and tax evasion. It comes after a meeting in Brussels. Cyprus
:09:06. > :09:11.requires a bail out but is struggling to reach a deal with the
:09:11. > :09:16.EU. German lawmakers have threatened to veto Cyprus unless it
:09:16. > :09:22.promises tough measures on its financial institutions. Shares in
:09:22. > :09:26.Apple have lost more than 20% this year. It is partly because of
:09:26. > :09:30.speculation that it will not seek the spectacular returns that it has
:09:30. > :09:35.seen over the last few years. Investors want to know if Apple can
:09:35. > :09:40.continue to release the latest popular products. There is
:09:40. > :09:46.speculation it is working on a watch. Loss of focus on time and
:09:46. > :09:51.the events taking place there today. -- there has been a lot of focus in
:09:51. > :09:57.the markets on China and the events that are going on there today. That