:00:03. > :00:13.Those are the latest headlines from BBC World News. Now for the latest
:00:13. > :00:19.
:00:19. > :00:29.financial news with Sally and World Chrysler defies the US government
:00:29. > :00:31.
:00:31. > :00:34.and refuses to recall older Jeep Japan's prime minister called to
:00:34. > :00:44.the third Garrow. Four on his latest attempt to revive the
:00:44. > :00:48.Japanese economy. -- calls it the third arrow.
:00:48. > :00:53.Welcome. Also, art China and the EU on the brink of a trade war over
:00:53. > :00:57.solar panels? We will have the latest. First, Chrysler is defying
:00:57. > :01:01.the US government and refusing to put in place a recall, requested by
:01:01. > :01:04.US road safety authorities. The US National Highway Safety
:01:04. > :01:06.Administration is asking Chrysler to recall older models of its Jeep
:01:06. > :01:15.brand, specifically the Grand Cherokee from 1993-2004 and the
:01:15. > :01:18.Jeep Liberty from 2002-2007. It says the fuel tanks are not
:01:18. > :01:24.sufficiently protected because they are behind the rear axle. Chrysler
:01:24. > :01:33.insists they are safe. Industry analyst Michelle Krebs gave us her
:01:33. > :01:43.reaction to Chrysler's defiant stand. It was shocking because ever
:01:43. > :01:45.
:01:45. > :01:52.since the Toyota recall a few years ago, they have been very quick to
:01:52. > :01:59.do recalls at the slightest moment. To have Chrysler say they are not
:01:59. > :02:04.doing it is highly unusual. Chrysler is convinced they are
:02:04. > :02:12.right and that the Government is wrong. We will see how that plays
:02:12. > :02:17.out. I think they are taking a riskier because, even though they
:02:17. > :02:25.may ultimately win this, there could be some public relations
:02:25. > :02:28.damage as a result. An opinion there on their reaction to that
:02:28. > :02:32.news by Chrysler. US authorities could force Chrysler
:02:32. > :02:36.to recall the cars, by taking the company to court. But if lawyers
:02:36. > :02:39.get involved the battle could drag The Japanese Prime Minister calls
:02:39. > :02:42.it his third arrow. Shinzo Abe is announcing the third phase today of
:02:42. > :02:49.efforts to revive the Japanese economy from decades of feeble
:02:49. > :02:54.growth. The first two arose involved a massive increase in
:02:54. > :03:02.government spending and pushing the central bank to boost the supply of
:03:02. > :03:08.money. -- arrows. Rupert Wingfield Hayes is our Tokyo Correspondent.
:03:08. > :03:12.Tell us more about what he has been saying. It looks like what we have
:03:12. > :03:16.got today is not the whole third arrow but just a little bit. We
:03:16. > :03:22.will have to wait until next week to see the whole thing. But what we
:03:22. > :03:26.have heard from Shinzo Abe today is a very public commitment to
:03:26. > :03:30.significantly increase in growth in the Japanese economy. He says his
:03:30. > :03:35.government will create 3% economic growth in the Japanese economy for
:03:35. > :03:40.the next ten years. That would be a 30% increase in income is over the
:03:40. > :03:44.next ten years. How exactly he will achieve that, that remains to be
:03:44. > :03:49.seen. The details are not really there yet. One of the things he did
:03:49. > :03:53.talk about today, interesting and has called people's attention, is
:03:53. > :03:58.the creation of new special economic zones, particularly in
:03:58. > :04:03.Tokyo. Essentially, turning Tokyo into a special economic zone that
:04:03. > :04:08.can compete with looser regulation, lower taxes, compete with places
:04:08. > :04:11.like London, Hong Kong and Singapore. How convinced our
:04:11. > :04:18.business leaders and economists about this in Japan? Because there
:04:18. > :04:25.is a fierce debate ongoing about the effectiveness of so-called
:04:25. > :04:29."Abenomics". There is a lot of scepticism in Japan that his
:04:29. > :04:34.policies will work and that he is really committed to this. We have
:04:34. > :04:38.seen the first two. A big increase in public spending, a big increase
:04:38. > :04:46.in the printing of money by the Bank of Japan. That will double the
:04:46. > :04:49.money's -- money supply. The third is considered difficult but the
:04:49. > :04:55.most important. Japan needs to open up its domestic economy to greater
:04:55. > :04:58.competition, to reform regulation and lower taxes if the economic
:04:58. > :05:03.recovery is to be sustainable over the long-term. There is a great
:05:03. > :05:07.deal of scepticism that Shinzo Abe, who represents the Liberal
:05:07. > :05:11.Democratic Party, the old ruling party, close to business interests,
:05:11. > :05:15.that he will really pushed through with these very difficult,
:05:15. > :05:20.challenging and unpopular reforms that are needed here. Perhaps he is
:05:20. > :05:29.more interested in tinkering round the edges. What we have seen today,
:05:29. > :05:37.people will be encouraged but they will want to see more. thank you.
:05:37. > :05:41.That story that is having the invocations in Japan. -- beat
:05:41. > :05:44.implications. In other news, US authorities have banned the import
:05:44. > :05:48.of older models of Apple's iPhone. It's the result of a patent dispute
:05:48. > :05:52.with Samsung. A US trade body ruled that Apple had infringed a patent
:05:52. > :05:54.owned by the Korean company. The ban can be overturned by the White
:05:54. > :05:58.House. It was a slow start to the year for
:05:58. > :06:00.the Australian economy. It grew 0.6% in the first three months of
:06:01. > :06:05.2013, which was less than economists were expecting. The
:06:05. > :06:09.strong Australian dollar has been hurting the nation's manufacturing
:06:09. > :06:16.sector. The central bank there has slashed interest rates over the
:06:16. > :06:23.past year. Economists think they could be more on the way.
:06:23. > :06:31.Venezuela's government is introducing rationing in the
:06:31. > :06:34.nation's most populous state, Zulia. From next week there will be
:06:34. > :06:37.restrictions on the sale of 20 basic items, including rice, flour
:06:37. > :06:40.and sugar. The government says the limits have been introduced to
:06:40. > :06:43.tackle smuggling, but critics say the food supply has been disrupted
:06:43. > :06:46.by government policy. Could Europe and China be heading
:06:46. > :06:49.into a trade war over solar panels? On Tuesday, European Union
:06:49. > :06:54.competition authorities slapped levies on Chinese solar panels.
:06:55. > :06:59.From this week there will be a tariff of just under 12%. That will
:06:59. > :07:04.increase to 47% in August and -- unless the two Max Sykes can reach
:07:04. > :07:12.an agreement. The EU says the Chinese firms are selling solar
:07:12. > :07:17.panels at less than they cost to reduce. And in response, China has
:07:17. > :07:20.launched an investigation into European wine. Ray Noble is from
:07:20. > :07:23.the Solar Trade Association which represents the solar industry here
:07:23. > :07:31.in the UK. Do you believe these tariffs are necessary? Definitely
:07:31. > :07:37.not. Why?Basically, all that has happened is that Chinese industry
:07:37. > :07:42.has started manufacturing in a bigger scale. Huge volumes. In
:07:42. > :07:46.doing so, they have driven down the cost. The European industry is
:07:46. > :07:51.still in megawatts scale, significantly smaller, and their
:07:51. > :07:55.cost base is higher. What do you think would have been the answer?
:07:56. > :08:02.Why are tariffs helping European companies? The European companies
:08:02. > :08:06.do not exist any more. They had lots of subsidies over the past 20
:08:06. > :08:11.years to build businesses. But they took the profit rather than
:08:11. > :08:14.invested into the industry. What the Chinese have done is they have
:08:14. > :08:19.had subsidies from Chinese government or whatever but they
:08:19. > :08:24.have invested in large scale and this was always the holy grail of
:08:24. > :08:27.solar panels. You believe the European solar companies just got
:08:27. > :08:34.their strategy wrong and therefore they failed because of their own
:08:34. > :08:37.poor decision-making? Exactly. I was in BP solar industry and we
:08:37. > :08:42.were number one in the world. We knew what it would take to move it
:08:42. > :08:46.into the future. It was huge investment and it decided it was
:08:46. > :08:52.not interested. Other companies have done the same. The Chinese
:08:53. > :09:00.have not. As a sole trader industry body trying to help the UK
:09:00. > :09:03.suppliers, what do you say? -- Solar. 80% of the products
:09:03. > :09:08.installed in the UK comes from China. Without it, the industry
:09:08. > :09:12.virtually dies in the UK. In terms of the future for European
:09:12. > :09:16.companies, what do they need? Do they need to enlarge their business
:09:16. > :09:21.on a much bigger scale to compete effectively with the Chinese?
:09:21. > :09:26.is correct. Unfortunately, they have missed the boat. They have had
:09:26. > :09:31.enough opportunities over the past 15-20 years and have not done it.
:09:31. > :09:36.They sold the equipment to Chinese companies, who set up five years
:09:36. > :09:43.ago, and they knew the Chinese were buying huge volumes of equipment to
:09:43. > :09:46.make solar panels. And so this was inevitable. Very interesting. Thank
:09:46. > :09:51.you. That is also in today's papers. We
:09:51. > :09:55.will discuss that in a moment. Looking at the markets, an
:09:55. > :10:00.interesting day. They are ebbing and flowing at the moment,
:10:00. > :10:07.depending on the outlook for the economies. On Friday, we are going
:10:07. > :10:10.to be getting a significant record about the jobs market in the US.
:10:10. > :10:16.After that, there will be speculation as to what the central
:10:16. > :10:20.bank in the US will do in response. The markets in Asia to a degree are
:10:20. > :10:24.focused on what central banks are doing to stimulate their economies.