02/10/2013

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:00:00. > :00:00.Tanzania and Pakistan ranked lowest. Those are the latest headlines from

:00:00. > :00:21.Political brinkmanship puts economic reform at risk in Italy — eurozone

:00:21. > :00:33.Blackouts and power cuts — companies in South Korea are looking at a

:00:33. > :00:34.bleak winter as a date to restart the country's nuclear reactors

:00:34. > :00:52.Welcome to World Business Report. Also in the programme we take a

:00:52. > :00:55.Welcome to World Business Report. how political games in America are

:00:55. > :00:58.political stakes are high in Rome today. Italian Prime Minister Enrico

:00:58. > :01:04.Letta faces a confidence vote after government. However, what started as

:01:04. > :01:19.committed to the current coalition. government. However, what started as

:01:19. > :01:21.committed to the current coalition. They're prepared to vote in favour

:01:21. > :01:29.of a Letta led, reform focused elections. So far the instability

:01:29. > :01:36.has driven Italy's borrowing costs only slightly higher. The euro has

:01:36. > :01:38.weakened. Let's get more on the financial implications that this

:01:38. > :01:48.game of political brinkmanship may Berenberg Bank. Lovely to see you.

:01:48. > :01:54.Where they think this confidence vote will go today? Really close

:01:54. > :02:00.call. Italian politics are very volatile. The Prime Minister only

:02:00. > :02:06.needs a dozen votes in the Senate to survive this vote. There are quite a

:02:06. > :02:10.few different is in Berlusconi's. There are probably some perfect

:02:10. > :02:21.few different is in Berlusconi's. in the committee on's protest party.

:02:21. > :02:23.—— comedienne's protest party. The mood seems to be moving away from

:02:23. > :02:29.Could this finally beat the air mood seems to be moving away from

:02:29. > :02:36.of Silvio Berlusconi? Dare we say it. —— could this be the end of

:02:37. > :02:37.of Silvio Berlusconi? Dare we say stop he has lost clear allies in the

:02:37. > :02:47.past. They may be challenging his stop he has lost clear allies in the

:02:47. > :02:49.past. They may be challenging his position. This time, it is his own

:02:49. > :03:02.tax fraudster. It is looking pretty party that is falling apart. It

:03:02. > :03:03.tax fraudster. It is looking pretty grim for Berlusconi at the moment.

:03:03. > :03:12.But he is the Houdini of Italian politics. The Eurozone debt crisis,

:03:12. > :03:20.out? It is the third largest economy where does this latest debacle put

:03:20. > :03:33.does go down the road of elections, in the Eurozone. It will have an

:03:33. > :03:35.does go down the road of elections, Berlusconi, it may have the opposite

:03:35. > :03:58.Over the summer, there was a real lull. The German elections are out

:03:58. > :04:04.of the way. Angela Merkel is still at the helm but we do not know who

:04:04. > :04:09.her coalition will be. Where are things? We have some news out of

:04:09. > :04:14.unemployment. Figures that are still very grim. What is your take on

:04:14. > :04:21.where the Eurozone economy is out at the moment? And the future with

:04:21. > :04:32.Angela Merkel at the home. —— at the forefront. All economies in the

:04:32. > :04:41.world have issues, structural, cyclical. These problems might be

:04:41. > :04:45.elsewhere but they're manageable. With growth, they're definitely

:04:45. > :05:01.manageable. The Eurozone looks a lot better than it did last year. We

:05:01. > :05:05.extensions. —— a allowed extensions. These are decisions that now look a

:05:05. > :05:12.lot easier to do and a lot less consequential if they get delayed

:05:12. > :05:19.will talk to you soon. And she very much. Any results we get out of

:05:19. > :05:24.Italy, we will keep you up—to—date One of the world's against economies

:05:24. > :05:44.imports almost all of its fuel. One of the world's against economies

:05:44. > :05:46.imports almost all of its fuel. Factories are also set to suffer,

:05:46. > :05:48.the country is home to some of the world's biggest technology and car

:05:48. > :05:58.producers: from Samsung to Hyundai. Lucy Williamson sent this report

:05:58. > :06:07.This is how South Korea's energy future was meant to look. But five

:06:07. > :06:12.years on, South Korea is facing future was meant to look. But five

:06:12. > :06:18.energy crisis. Renewables still count less than 3% of supply and

:06:18. > :06:24.cleaner, and nuclear power is no longer the silver bullet it once

:06:24. > :06:31.was. The Fukushima nuclear disaster in Japan has made nuclear power

:06:31. > :06:32.was. The Fukushima nuclear disaster scandals about fake safety security

:06:32. > :06:41.certificates have raised concerns even higher. Plans are on hold.

:06:41. > :06:46.According to one key government adviser, South Korea's plan to get

:06:46. > :06:55.two thirds of its electricity from nuclear power by 2030 is history. We

:06:55. > :07:10.have two options. Call or natural gas. We have many infrastructures

:07:10. > :07:12.for natural gas. It is a better option to import. In the longer

:07:12. > :07:21.term, we have to think about how option to import. In the longer

:07:21. > :07:24.term, we have to think about how much the generations will be coming.

:07:24. > :07:31.shortage, South Korea could turn much the generations will be coming.

:07:31. > :07:32.shortage, South Korea could turn increasingly to fossil fuels. This

:07:32. > :07:40.electricity. Two more being built increasingly to fossil fuels. This

:07:40. > :07:42.electricity. Two more being built next door. TRANSLATION: The current

:07:42. > :07:58.built now comparable to the size of nuclear plants. In terms of energy

:07:58. > :08:05.built now comparable to the size of scale. Bigger plants mean coal power

:08:05. > :08:13.question is a sensitive one. South Korea has vowed to produce its

:08:14. > :08:18.Cleaner types of call is one option but many believe it will prove too

:08:18. > :08:22.expensive. Without a solution, South Korea could find itself caught

:08:22. > :08:29.between the green economy it once did build and the energy hungry

:08:29. > :08:30.between the green economy it once As we go into the second day of

:08:30. > :08:32.between the green economy it once partial government shutdown in the

:08:33. > :08:36.US, markets are staying resilient. Investors around the world seem

:08:36. > :08:41.confident — at least for now — that this game of political brinkmanship

:08:41. > :08:46.will be short—lived. But could this change as the October 17th debt

:08:46. > :08:49.ceiling deadline looms? Let's get a sense of how investors in Asia are

:08:49. > :08:59.positioning themselves. Rico Hizon is live in the Singapore business

:08:59. > :09:05.talking to various investors and other players about this. Had they

:09:06. > :09:09.been seeing? They're very calm about the situation. —— what have they

:09:09. > :09:21.Japan is bucking the upward trend. The government has said it will

:09:21. > :09:27.Japan is bucking the upward trend. ahead with an April tax increase.

:09:27. > :09:35.Some are warning it distracts on for more than a week, the US economic

:09:35. > :09:47.recovery could be derailed. Asia does rely on the US. It relies on

:09:47. > :09:51.relies on the US for foreign direct investment. At the moment, these

:09:51. > :10:06.wean themselves of this dependence, investment. At the moment, these

:10:06. > :10:13.wean themselves of this dependence, they will experience a bit of a

:10:13. > :10:27.In the short term, investors are Markets are mixed in Asia. The Dow

:10:27. > :10:38.Jones and the other major markets yesterday, slightly higher. Brushing

:10:38. > :10:40.off the fear factor, as far as the shutdown is concerned. I will see