:00:03. > :00:13.Those are the latest headlines from BBC World news. Time now for World
:00:13. > :00:23.
:00:23. > :00:27.Once thought of as an economic powerhouse, India may post the
:00:27. > :00:30.weakest growth rate in a decade. We will take a look at one is -- at
:00:30. > :00:35.what is going wrong. But none for mob, another record
:00:35. > :00:45.unemployment figure is expected for the eurozone with the Sun 19.5
:00:45. > :00:48.
:00:48. > :00:52.million people out of work. -- An exciting look at all the latest
:00:52. > :00:57.in the world of business and money. We will be taking a look at those
:00:57. > :01:01.eurozone figures. We will also go live to the Asian
:01:01. > :01:04.pro and talk about the roller- coaster ride the Nikkei has been
:01:04. > :01:10.having. We'll see how it has been faring today.
:01:10. > :01:14.First we start with India. Just three years ago that economy was
:01:14. > :01:20.booming, with annual growth of more than 11% and predictions by some
:01:20. > :01:25.that it was on track to overtake China. How times have changed.
:01:25. > :01:29.Since then the rate of growth has slumped. India has been hit hard by
:01:29. > :01:32.the global economic slowdown and a raft of problems at home, including
:01:32. > :01:37.political deadlock and a string of corruption scandals that have
:01:37. > :01:40.deterred foreign investors. Later this morning we will get the growth
:01:40. > :01:46.figures for the first quarter of this year. They are expected to
:01:46. > :01:51.show India's economy expanded at a rate of just 4.8% between January
:01:51. > :01:56.and March of this year. If we use this to look at India's growth for
:01:56. > :02:00.the past 12 months it would come in at just 5%. That is the weakest
:02:00. > :02:10.rate in a decade. We will go straight to our reporter was at a
:02:10. > :02:10.
:02:10. > :02:14.small manufacturing plant in Mumbai. You are at an auto parts
:02:14. > :02:19.manufacturer. We had a company's numbers the other day and it
:02:19. > :02:26.highlighted how hard it is on the Indian market. It slumped. It
:02:26. > :02:31.reflects the general economy there? Well, there are some external
:02:31. > :02:37.factors that have impacted India in the last couple of years. External
:02:37. > :02:41.demand has dried up. Manufacturers like this one and even beat
:02:41. > :02:46.industry had unanimously said that India's problems are more home-
:02:46. > :02:49.grown. That it is government policy that has not supported manufacture
:02:49. > :02:53.an in fact policy has been inconsistent. Industry has been
:02:53. > :02:58.scared to make any big investments. Over the past year we had seen
:02:58. > :03:02.investments falling sharply. We have also seen less in employment
:03:02. > :03:07.generation. Jobs are a big worry for fresh graduates in the country.
:03:08. > :03:13.Another big problem is consumption. Prices have been rising. People
:03:13. > :03:21.have been consuming less. For the first time in a decade, and your
:03:21. > :03:24.car sales were down. -- annual. It is surprising. For viewers
:03:25. > :03:30.around the world, it must be surprising. These home-grown
:03:30. > :03:35.problems, have they only risen in the past three years? Three years
:03:35. > :03:45.ago, India was booming. We thought it was going to equal or overtake
:03:45. > :03:45.
:03:45. > :03:50.That is right. Between 2009 and 2011 India was growing at 8.4%. It
:03:50. > :03:55.is a little over a year ago that we started seeing a slowdown. That is
:03:55. > :03:57.when we saw government involve -- government policy in action. For
:03:57. > :04:01.example the Government moved on foreign direct investment in the
:04:01. > :04:05.retail sector. They opened it up and then had to backtrack on the
:04:05. > :04:08.decision. What industry is saying is that they cannot trust any
:04:08. > :04:13.decision the Government is making. They are scared to make any long-
:04:14. > :04:18.term investments. At the end of 2012 we did see the Government
:04:18. > :04:21.recognise that and we did see them opening up several directors --
:04:21. > :04:24.several sectors to foreign investment. India's finance
:04:24. > :04:27.minister has been travelling around the world to try and build
:04:27. > :04:31.investment. He has been holding meetings with industry bodies
:04:31. > :04:34.within the country as well. Most people from the industry say that
:04:34. > :04:38.they need to see a little more action on the ground. The other big
:04:38. > :04:42.worry is that India is scheduled to have nationwide elections next year.
:04:42. > :04:44.They are worried that this might derail the process of economic
:04:44. > :04:48.reform. We will be checking in with you
:04:48. > :04:57.over the next few hours, so you stay there and we will talk to you
:04:57. > :05:02.Japan's stock market has been recovering some ground after
:05:02. > :05:09.yesterday's steep falls that saw the Nikkei, the main market, down
:05:09. > :05:14.some 5%. We go straight to our reporter in Singapore. Great to see
:05:15. > :05:22.you. The Nikkei, it has been a roller-coaster ride. How is it
:05:22. > :05:29.faring today? It has been a crazy ride over the past week. 5.2%
:05:29. > :05:34.yesterday. Over the past week close to 15%. That is 1,500 points lost
:05:34. > :05:40.in a week of trade. Today we are seeing a rebound in Tokyo's stocks,
:05:40. > :05:46.but still not enough to cover for yesterday's steep downturn. Exports
:05:46. > :05:49.are leading the recovery, with Sony, Panasonic and listen up between 1%
:05:49. > :05:53.and 1.5%. The gains are being kept due to the continued strength of
:05:53. > :05:57.the Japanese yen, which is currently at a three-week high
:05:57. > :06:01.against the US dollar. If you take a look at all the markets across
:06:01. > :06:11.the board, it is still very cautious. Australian and South
:06:11. > :06:11.
:06:11. > :06:15.Korean shares inching up by midday trading. Sydney being led by mining.
:06:16. > :06:20.Markets in Shanghai, Hong Kong, Jakarta, Manila not as lucky. All
:06:21. > :06:24.in negative territory. When you speak with traders they say share
:06:24. > :06:29.prices are slowly gathering some upside momentum held by this
:06:29. > :06:34.lacklustre economic data from the US which includes GDP data, which
:06:34. > :06:40.was slightly less than expected in the first quarter. All pointing to
:06:40. > :06:46.a fragile expectation and raising expectations that the Fed will keep
:06:46. > :06:51.its monetary policies. I mentioned India at the top of the
:06:51. > :06:55.programme, but it is not the only bit of Major at news out. We are
:06:55. > :07:00.also waiting for unemployment figures from the countries that use
:07:00. > :07:09.the single currency. They are expected to show the jobless rate
:07:09. > :07:16.hit yet another record high for last month, reaching 12.2 %. It
:07:16. > :07:19.means that almost 19.5 2 million people in the eurozone are now
:07:19. > :07:23.jobless. One hope for job creation is the troubled European nations
:07:23. > :07:33.can export more outside the eurozone. In Spain exports have
:07:33. > :07:40.been rising, but from a low level. In these boxes there are small
:07:40. > :07:44.Spanish success stories. This is one of three shops of a shoe market
:07:44. > :07:54.-- shoemaker in the poshest part of Madrid. Elsewhere in Spain during
:07:54. > :08:00.the recession the company has closed for lack of around 40 shops.
:08:00. > :08:05.Last year they opened more shops in other countries. As the internal
:08:05. > :08:11.market in Spain shrinks, success in business means growing your market
:08:11. > :08:15.abroad. TRANSLATION: The situation now means you have to go out side
:08:15. > :08:19.to sell. The domestic market is shrinking and it is very difficult
:08:19. > :08:24.to grow your business here. All these strategies are to go out side
:08:24. > :08:31.and try to conquer foreign markets. Spanish exports in the first
:08:31. > :08:38.quarter of this year were up 4% on last year. Imports falling because
:08:38. > :08:42.of falling demand, Spain has turned a small deficit into a surplus.
:08:43. > :08:46.More Spanish goods sold abroad is a ray of light in an otherwise gloomy
:08:46. > :08:50.economic picture. The government has brought in a raft of economic
:08:50. > :08:57.reforms and a rise in exports is a sign that Spanish businesses are
:08:57. > :09:02.becoming more competitive. If you make the air conditioning systems
:09:02. > :09:08.on board trains, like this business near Madrid, your internal market
:09:08. > :09:13.has almost collapsed. Their business, like others he, now
:09:13. > :09:17.relies on trade abroad. Spanish companies' competitive edge is held
:09:18. > :09:21.by relatively low wages compared with northern Europe. The bosses
:09:21. > :09:29.here believe the Government's reforms of the Spanish economy
:09:29. > :09:34.still haven't gone far enough. There is a need to further it makes
:09:34. > :09:39.me working market more flexible. There needs to be more innovation
:09:39. > :09:44.and the competitiveness of companies and productivity needs to
:09:44. > :09:52.improve. An improvement of the education system, for instance
:09:52. > :09:58.technical schools. The Spanish car industry is also doing well. Like
:09:58. > :10:03.other manufacturers, Volkswagen's plant in Pamplona is expanding. The
:10:03. > :10:07.recession hit drags on and unemployment is still horribly high.