:00:08. > :00:18.Those are the latest headlines from BBC World News. Now, the latest
:00:18. > :00:18.
:00:19. > :00:21.financial news with World Business Portugal's Prime Minister says he
:00:21. > :00:28.will not sway from his austerity drive despite the resignation of
:00:28. > :00:30.two ministers over the measures in as many days.
:00:30. > :00:38.German Chancellor Angela Merkel hosts a summit to tackle Europe's
:00:39. > :00:48.youth unemployment crisis, but will it deliver anything substantial? We
:00:49. > :00:49.
:00:49. > :00:56.look at a controversial new plan to Welcome to World Business Report.
:00:56. > :01:06.I'm Sally Bundock. Also in the programme: We await the verdict of
:01:06. > :01:07.
:01:07. > :01:10.the accounting scandal that To pinch a phrase from Oscar Wilde:
:01:10. > :01:12.To lose one minister is unfortunate. To lose two looks like carelessness.
:01:12. > :01:19.That's the situation Portugal's Prime Minister finds himself in
:01:19. > :01:21.this morning. Earlier, in a televised address, Prime Minister
:01:21. > :01:23.Pedro Passos Coelho vowed he'd fight on with austerity measures as
:01:23. > :01:26.resignations threaten his government. On Tuesday the
:01:26. > :01:28.country's Foreign Minister, Paulo Portas, attempted to resign. He is
:01:28. > :01:31.also the leader of the junior partner in the governing coalition.
:01:31. > :01:33.And on Monday, the country's Finance Minister, Vitor Gaspar,
:01:33. > :01:36.resigned. He'd been overseeing the government's efforts to reduce
:01:36. > :01:39.Portugal's debt by means of drastic public spending cuts and tax rises.
:01:39. > :01:41.Austerity policies in Portugal have so far failed to stem a deep
:01:42. > :01:51.recession and a rapid rise in unemployment, as Alison Roberts now
:01:52. > :01:53.
:01:53. > :01:57.reports from the capital Lisbon. Despite his two most senior
:01:57. > :02:03.officers entering the resignation, the par Minister of Portugal
:02:03. > :02:10.pledged to continue in offers. Tries but I will not resign. I'll
:02:10. > :02:15.not abandon my country. We live in a time when cannot do this in the
:02:15. > :02:21.face of adversity. How can I get scared when I see bravery in
:02:21. > :02:25.hundreds of thousands of people in Portugal? The Prime Minister has
:02:25. > :02:30.not accepted the resignation of the Foreign Minister, submitted a few
:02:30. > :02:34.hours earlier. As leader of the junior partner in the two party
:02:34. > :02:40.coalition, he repeatedly distanced himself from the unrelieved
:02:40. > :02:47.austerity advocated by the Finance Minister. Critics say it has pushed
:02:47. > :02:52.the country deeper into recession and debt. The resignation on Monday
:02:52. > :02:55.shook the government. He cited public weariness with two years of
:02:55. > :03:01.austerity, a series of missed deficit targets and a lack of
:03:01. > :03:08.political backing within the coalition, reasons for his stepping
:03:08. > :03:12.down. The Prime Minister's decision to replace him as a woman equally
:03:12. > :03:16.committed to austerity was seen as a signal there will be no major
:03:16. > :03:20.shift in economic policy. According to the Foreign Minister in his
:03:20. > :03:26.resignation statement on Tuesday, but appointment was made his
:03:26. > :03:35.explicit advice. He has not responded to the Prime Minister's
:03:35. > :03:42.refusal to accept his resignation or for the call that the party will
:03:42. > :03:47.continue. Outside, the mood had shifted against austerity of. Last
:03:47. > :03:51.week, unity among the unions with a general strike. Some opposition
:03:51. > :04:01.politicians are calling for people to come onto the streets to demand
:04:01. > :04:05.
:04:05. > :04:08.the government's resignation. German Chancellor Angela Merkel is
:04:08. > :04:11.hosting a summit on youth unemployment in Berlin later today.
:04:11. > :04:14.It comes at a time when unemployment across the 17 European
:04:14. > :04:16.Union countries that use the euro hit an all-time high in May. The
:04:16. > :04:19.most recent figures from Eurostat, the EU's statistics office, found
:04:19. > :04:22.the eurozone's unemployment rate was 12.2% in May, up from 12.1% in
:04:22. > :04:31.April. Across the eurozone, there were 19.34 million people
:04:31. > :04:36.unemployed - around 70,000 higher than the previous month. Nearly one
:04:36. > :04:40.in four people aged under 25 are estimated to be out of work. This
:04:40. > :04:43.latest coming together of leaders aims to agree on how best to spend
:04:43. > :04:51.the 6 billion-euro fund - around $8 billion - dedicated to reducing the
:04:51. > :04:54.high levels of youth unemployment. One idea on the table is a new
:04:54. > :05:00.scheme to attract the young and unemployed to Germany, where many
:05:00. > :05:02.companies are keen to recruit new talent. But is this good for
:05:03. > :05:05.Europe? Is it creating further problems for the future? Germany's
:05:05. > :05:15.Labour Minister, Ursula von der Leyen, told Steve Evans why the
:05:15. > :05:23.
:05:23. > :05:26.Young people are willing to move. They want perspective. The only
:05:26. > :05:32.barrier they have in the European labour market is a language barrier.
:05:32. > :05:37.We are paying for language classes if the want them. And also
:05:37. > :05:43.travelling costs. The cost to have eight weeks of internships, just
:05:44. > :05:49.have to match the expectation of the potential employee. -- employee
:05:49. > :05:58.era. I can hear voices in Greece and Spain saying, you are taking
:05:58. > :06:03.our ghost workers, you are taking our future. -- best workers. These
:06:03. > :06:07.young people do not have work. They are looking for a job. Unemployment
:06:07. > :06:15.is painful for families because these young people have no future
:06:16. > :06:21.right now. It is not the only one way thing. We have to invest in the
:06:21. > :06:25.country with the highest youth unemployment. There has to be
:06:25. > :06:30.billions to invest in companies that are healthy and need
:06:30. > :06:34.investment credit for a moderate interest rate. This is the growth
:06:34. > :06:41.initiative right now, giving relief in the short-term and investing in
:06:41. > :06:46.the future. We will update you with the news
:06:46. > :06:49.later. Let's look at Japan now, where the
:06:49. > :06:52.Tokyo District Court will hand down its verdict on a case involving the
:06:52. > :06:55.former chairman and two other ex- senior executives of camera and
:06:55. > :06:58.medical equipment maker Olympus. The court will rule over their role
:06:58. > :07:06.in the huge accounting scandal that rocked the firm in 2011. The case
:07:06. > :07:09.has just started in Tokyo, so we won't get the verdict immediately.
:07:09. > :07:12.The scandal made headlines around the world. Has anything actually
:07:12. > :07:19.changed in corporate Japan as a result? I'm joined by Dr. Seijiro
:07:19. > :07:23.Takeshita, Director of Mizuho International.
:07:24. > :07:30.We have talked about this many times. The government at the time
:07:30. > :07:40.said it would clean up corporate Japan. Has anything changed?
:07:40. > :07:41.
:07:41. > :07:45.really. There was the seeming economic revival we saw. But as you
:07:45. > :07:53.suggested, we need to see more internationalisation in many of the
:07:53. > :07:58.Japanese companies to have some segments of governors in many areas.
:07:58. > :08:04.What will kick-start a serious change? Does it take another
:08:04. > :08:12.scandal like the Olympics scenario? What was the verdict be today?
:08:12. > :08:18.relative strength of foreign investors is actually giving some
:08:18. > :08:22.pressure. There are some changes being made. That includes clarity
:08:22. > :08:28.in auditors. Increased diversity on the employment side. That is
:08:28. > :08:35.gradually happening. When something hot goes down the throat and
:08:35. > :08:45.stomach, forget about it. That is as saying in Japan. We need to put
:08:45. > :08:55.
:08:55. > :08:57.pressure to open up the doors on Oil is above $100 a barrel. Traders
:08:57. > :09:04.are worried about disruptions to supplies after embattled Egyptian
:09:04. > :09:06.President Mohammed Morsi vowed not to resign. For a bit of analysis on
:09:06. > :09:15.this, I'm joined by Justin Urquhart Stewart, Director of Seven
:09:15. > :09:21.Investment Management. Is it about the Suez Canal?
:09:21. > :09:26.Partially. That is one of the key arteries to world oil. We have to
:09:26. > :09:32.differentiate between different types of crude oil. We have liked
:09:32. > :09:41.oil. That is used in the US. It is not affected that much. Then you
:09:41. > :09:50.have the heavier, sour crude oil. We have seen price rises with that.
:09:50. > :09:55.There are restrictions. Exports have decreased by half. In the US,
:09:55. > :10:01.the energy department will release their weekly report on stockpiles.
:10:02. > :10:07.They will show the demands going up in the US. It is interesting. One
:10:07. > :10:16.of the reasons the price has been OK used because the demand in US
:10:16. > :10:20.has been, not flat, but a spiky. America, the economy is improving