05/12/2013 World Business Report

Thousands of protesters angry at the government decision not to sign an

association deal with the European Union. Now for the latest financial

news with Sally. Britain's economy is bouncing back

but the austerity is not over. That is the message we are expecting from

Chancellor George Osborne has the abilities Autumn statement. Waging

the war on fast food giants, workers wage war across a wage.

Welcome, you are with World Business Report. Also in the programme we

will talk about Qantas because shares diving in the company, it has

announced a profit warning and job cuts. First, we start in the UK

where Chancellor George Osborne delivers his autumn budget statement

to Parliament in a few hours. Britain's economy has made an

unexpectedly strong return to growth this year after a long period of

stagnation. He is expected to say that it will grow by 2.5% or more

next year. That would make it one of the best performing developed

economies. However, it is one of the most indebted as well. A national

debt of ?1.2 trillion. It cost tens of billions in interest every year.

The austerity will continue with new government cuts of ?1 billion per

year for the next three years, according to a leaked report, and is

a steady rise in the retirement age. Britons may not get a state 's

pension until they are 70, those under 18 years old now. There are

expected to be some tax breaks and handouts. Particularly to help with

energy bills. I have the head of European research at Standard

Chartered with me. Everybody will be digesting what was said and picking

apart. What you think will say? I think he will be emphasising the

economic recovery and emphasising the good news and also at the same

time he does not want people to expect too much too soon. As you

said, there is an election coming up, there is another budget to come

before that, I think that what is what he is what -- wanting to do now

is that business holds up and that business in the private sector can

counteract the cut in the public sector. Has he got it right? Anyone

looking at the state of the economy now will say perhaps even has. Plan

a seemingly worked, they announced infrastructure spending as well.

That is a lot of investment. Do you think they are on the right path, an

election in 2015, things will be steered to win votes. If you look at

the economic recovery than it does appear to be reasonably broad base.

Of course, there is quite a lot of support from the housing sector and

that is where some policymakers are somewhat worried that house prices

are rising in parts of the country to quickly and recovery, to a

certain extent is based on housing. We don't want to go through another

boom and bust and I think this is why the Chancellor is going to be

emphasising businesses and the need for investment to really pick up

between now and the election. How healthy is the recovery from your

point of view, clearly we are looking at what they are talking

about, 2.5% growth in the year future -- near future. Interest

rates could go up. How healthy is the economy as a whole, we still

hear about a lot of people, the poverty and of the scale, having a

difficult time. In terms of growth, the economy is looking in good

shape, we have been a very prolonged downturn and period of economic

meekness. You would anticipate that in economy would bounce back after

that. There are certainly some pockets of the economy that are

vulnerable. Wages have fallen in real terms over the last few years.

Many people are still finding it very difficult, some people just

don't have enough to make ends meet. Overall, I think the outlook is

probably improving, the Bank of England will be very cautious not to

raise interest rates too soon. That could cut short the recovery and

raises all sorts of issues about households that are very indebted

and mortgages that are particularly high at the moment. Thank you very

much for your time. There will be a lot of information for you on the

BBC website and BBC News. Television and radio as the statement kicks off

today. Let's move on. They are calling it the fight for 15. US

workers in the fast food industry are planning a wave of strikes

today, demanding pay $15 an hour a day after the president called the

growing gap between the rich and poor the defining challenge our

time. Low-paid employees from chains McDonald's, Wendy's and Taco Bell

are expected to walk off the job in 100 cities around the country.

America's stock market is booming. Corporate profits are up. Although

the economy may be improving, the gains have not been shared equally.

31 -year-old Morris Royal earns $7.25 an hour. Working at Burger

King. Not enough he says to afford anywhere to live.

King. Not enough he says to afford shelter right now. I have been in a

shelter for a month now. Struggling, trying to get special

assistance. His frustration is shared by many.

The fast food strikes that started in New York a year ago are expected

to spread to 100 cities on Thursday. They are calling for $15

an hour. More than double the national minimum wage. They want the

right to form a union. Applicants for the restaurant industry

questioned who will pay for these wage increases. The model of the

fast food industry was to provide jobs for people starting at a low

wage. It is not designed to have a long time people. If we change the

business model, it will be difficult to maintain the business model. )

the growing gap of the rich and poor has not escaped the attention of the

White House. President Obama defining it as the defining message

of our time. Increase. The timing of remarks is likely to draw more

attention to the protests. Fast food jobs represent a growing part of the

economy, the challenge of making ends meet on a low wage is going to

hit home. That is why the protest that started in New York is finding

a larger audience. Shares in Qantas slumped to an 18

month low this morning of the Australian airline. It announced

1000 job cuts. Carter says a marked deterioration in profits, it is set

to lose $270 million in the half of the year. It is struggling with

fierce competition from virgin Australia. Tell us a bit more about

the challenges Qantas and why it has had to go down this road of cutting

jobs yet again. Sally they have been struggling for some time now,

increased competition has been a key factor higher costs and a subdued

travel market around the world has seen at international operation make

losses. That has been a drag on its profitability. Owning the contest

domestic operations have shrunk as well. Making life a bit more

difficult. If you break down the numbers, that translates into a loss

of $1.5 million per day. Investors are not happy with that. We will get

their shares in a moment. Trading in Australia. Apple has struck a deal

with China Mobile to offer the iPhone on its network. Those

reporting in the Wall Street Journal. China has been issued with

four G licences. It has 700 million subscribers. One of the last in the

world that does not offer the iPhone at the moment. A big story in

Australia is Qantas. at the moment. A big story in

Australia is It shares have dropped by 15% by midday in Australia.

Today, you can see the market there is down by 1.5%, Japan has lost a

bit of ground, down by 1.6%, Standard Chartered has also issued a

profits warning. Its shares slumping in Hong Kong. It lets look at the

United States. It has been a mixed colours. That is all from me for the

time being. United States. It has been a mixed

colours. That is all I'll be back to review the papers in a few