31/10/2013 World Business Report

destined for neighbouring Algeria. Those are the latest headlines from

BBC World News. Now for the latest financial news and world Business

Report. Nuclear fall`out ` the Japanese government considers the

break up of Tokyo Electric 2.5 years after the Fukushima disaster. Young

and jobless ` we have a special report from Italy where young people

are turning to the unofficial job market for low paid work for cash.

Welcome to world Business Report. I'm Sally Bundock. In a minute we'll

also look at Facebook's results. The social media company reporting a 60%

rise in revenue due to strong advertising sales. But first, it's

the world's fourth biggest power generator. But Tokyo Electric or

TEPCO is best known for the disaster at its Fukushima nuclear plant 2.5

years ago. Today the company will report escalating losses. But the

main issue for most will be the cost of the clean`up operation which is

estimated to be at least $100 billion. The government is

considering splitting up the company so it can oversee the remainder of

the clear`up. The recommendation comes after a string of problems at

Fukushima, including repeated leaks of radioactive water. Rupert

Wingfield Hayes is in our Tokyo bureau. You have been to the site

several times, tell us more about this government planned? I was

talking to an economist about this before I came here. He was saying

this was the only choice that the Japanese government now has.

Unpleasant as this choice may be, the last two and half years of the

attempt to clean up the disaster has been something of a fiasco. It has

been chaotic and there have been leaks and accusations of

incompetence. The only choice the Japanese government faces is to

split off from Tepco which is dealing with the cleanup and to

create a new organisation just to concentrate on this task at

Fukushima. And then allow the rest of tip code to return to its core

business and concentrate it, which is generating electricity. And it is

absolutely vital to the Japanese economy that Tepco is able to do

that. And supply efficient energy to the Japanese capital. We will leave

it there because the line is not contested between you and us right

now. We will return perhaps later on. We got the gist of that story.

The company is expecting to report those escalating losses. We will be

talking about them in more detail. Moving on, around the world, 73

million young people are out of work, that's three times more than

other adults. In just a few hours, we'll get the latest jobless figures

for the European Union. In Italy, young people are increasingly

turning to the unofficial job market, taking low`paid cash`in`hand

work. But that means they may lose out on sick pay, paid leave,

redundancy pay or protection from and other important employment

rights. As part of a special season of reports on the problem of youth

unemployment, our Chief Economics Correspondent Hugh Pym reports from

Rome. It may just look like pizza dough but for these young Italians,

they hope it is their passport into the world of work. Officially, due

to unemployment and as leaders running at 40%. That statistic

includes many likes Dell who was working on the black market at a

call centre. She is training to make pizza show she can find legitimate

job and hopefully get a mortgage and start a family. How can I grow up a

child if I do not have a good job. We have no future in the next ten

years, it is impossible to have something good for you. I am 28.

What will I do for the next ten years? The Italian economy is in a

difficult place. Lack of growth means eight lack of job creation and

the unofficial world of work remains a problem. On some estimates, the

Italian black economy is worth a fifth of the country's annual

output. That has long been a problem for the authorities, police say they

are cracking down on it. This police chief told me in raids on

businesses, they had discovered 30,000 illegal workers last year. It

is very important, it harms many interests. It heads the state and

the national Budget because it means taxes are not paid and the national

Budget because it means taxes are not paid and the purpose is also to

protect honest businesses. That `` those that comply with the law

suffer competition from other come `` companies which can sell goods

and services at lower prices. As jobseekers search for joke ``

vacancies at this centre, they are up against a lack of openings

because employers find it too expensive to hire people. Another

reason Italian workers are pushed towards the legal jobs. Staff say

some of the younger generation have moved to the black economy and

stayed there. Before it was a bridge between education and a permanent

job which gave you a chance to start a family and make a future for

yourself. Unfortunately, more and more young people find that the only

option open to them. For this woman, the black economy option is a

necessity. She and other trainee hope her skills will be a pathway to

work even if it is a long way from Italy where the recipe for

legitimate jobs still does not seem to be working. In other news: Social

networking giant Facebook reported a 60% surge in revenue, to just over

$2 billion in the third quarter, generating profits of $425 million.

Revenue from advertising grew by 66% with nearly half of that coming from

mobile ads. Facebook's shares surged 15% in after hours trading in New

York. Wine lovers are facing the threat of a global shortage of the

drink. According to new research by economists at Morgan Stanley,

production last year dropped to its lowest level since the 1970s.

According to the analysts, the slump in wine production has left current

demand outstripping supply by about three billion bottles this year.

China's top four banks have posted their biggest increase in bad loans

since at least 2010. Bad debts at Industrial and Commercial Bank of

China, China Construction Bank, Agricultural Bank of China and Bank

of China rose 3.5% in the third quarter, to $54 billion. Valuations

of the big banks have dropped to record lows as investors brace for a

surge in loan defaults. The world Islamic Economic Forum comes to a

close in London on Thursday. It's the first time the event has been

held outside a predominantly Muslim country. It aims to cater for the

millions of Muslims who seek an alternative to western`style loans

and insurance by charging fees or rent on property. Islamic finance

already accounts for one in every hundred dollars in the world banking

system and London is just one of the financial centres hoping to cash in

on that trend. This man has been living in this house in East London

with his family for over a year. Like many people in Britain, he

wanted to buy his own home. As a Muslim, he did not want to fund it

in the way most people do in the UK. For me it is about being consistent

with the values of my fate. Islam requires that we do not involve

ourselves with user areas transactions. Islamic finance means

I can meet that criteria and look at Finance and economics in a more

ethical way. Instead of taking out a regular mortgage, where he borrows

money from the bank and agrees to pay it back, plus interest over a

fixed period, got an Islamic compliant mortgage. This week London

is hosting the world Islam at economic Forum. Islamic finance is a

fast`growing sector, financial is like London are keen to take

advantage. Islamic finance is estimated 4 trillion US dollars,

this is around 1% of the total financial assets of the world. We

believe it is all growing very fast historically. It will continue to

grow very fast to increase the share. This is why we see hubs like

London and Malaysia and Dubai are very important to be able to grow

the share. Earlier this week, the British government announced its

first Islam at Bond. They denounced a variation of initiatives. It hopes

by investing in Islamic finance this will create jobs in profit for the

UK. London has been able centre for banking for hundreds of years. It is

an industry that has changed over time. Despite stiff competition from

the Middle East and places like Asia, as alarm at Finance is set to

be an increasingly important part of London's ranking centre. The

markets, we are seeing a slight sell`off today. Strong gains across

Asia yesterday ahead of the meeting of the Federal reserve. Most people

are betting, post` Federal bank meeting, they may start to draw back

on stimulus may be in January rather than March. That is spooking

investors a little. I will see you seen for a look at the papers. ``

see you soon. Britain's rail regulator is set to announce how it

plans to spend 21 billion pounds on the network over the next five

years. The office of Rail Regulation's consulted with industry

and the public in coming up with the Budget and is expected to spend some

of the money on scrapping potentially dangerous level