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say it is immoral. Those are the latest headlines. | :00:00. | :00:07. | |
Now the latest financial news with Sally. | :00:08. | :00:16. | |
Italy's Prime Minister fights for his political survival amid soaring | :00:17. | :00:20. | |
youth unemployment and the longest recession since World War II. | :00:21. | :00:25. | |
Plus, taking on the Dreamliner - Airbus shows off its hi-tech A350 at | :00:26. | :00:26. | |
the Singapore Airshow. Welcome to World Business Report, | :00:27. | :00:41. | |
I'm Sally Bundock. Also in the programme: Stellar results from | :00:42. | :00:44. | |
Lenovo as the Chinese PC giant continues to branch out. We'll have | :00:45. | :00:50. | |
the details. We start with Italy, and a standoff | :00:51. | :00:54. | |
between these two men over how to pull the country out of its worst | :00:55. | :00:58. | |
slump since the Second World War. On the left, Prime Minister Enrico | :00:59. | :01:05. | |
Letta. On the right, the leader of his Democratic Party, Matteo Renzi, | :01:06. | :01:07. | |
currently mayor of Florence but with major designs on the Prime | :01:08. | :01:15. | |
Minister's job. Today, Letta's future could be decided at a party | :01:16. | :01:18. | |
summit. On Wednesday, he defied pressure to resign, instead | :01:19. | :01:20. | |
outlining plans to create jobs, improve the country's welfare system | :01:21. | :01:28. | |
and reduce taxes. Italy is the third biggest economy that uses the Euro. | :01:29. | :01:32. | |
Its health is of huge importance to the region. And, at the moment, it | :01:33. | :01:37. | |
is not in good health at all. Years of recession have meant the economy | :01:38. | :01:42. | |
has shrunk by 9% since 2007. And unemployment is at a record high - | :01:43. | :01:45. | |
the jobless rate among the under 25s is now 41.6%. I'm joined by | :01:46. | :01:54. | |
economics professor Giuseppe Fontana. Thanks for being on the | :01:55. | :02:02. | |
programme. It all sounds pretty dire, and use of political | :02:03. | :02:05. | |
instability is a very familiar tale in Italy. What you think is going to | :02:06. | :02:10. | |
happen in the tussle between these two men? Good morning. It is not the | :02:11. | :02:15. | |
first time that we have a political battle in Italy, and I don't think | :02:16. | :02:19. | |
it will be the last time. The economic situation is difficult at | :02:20. | :02:24. | |
the moment, and therefore in a sense it is normal, given the current | :02:25. | :02:30. | |
political situation, that there are rumours and speculation that there | :02:31. | :02:34. | |
may be a change in government. You think Matteo Renzi is the right man | :02:35. | :02:42. | |
to run Italy? Well, I think I will stay back a bit and say the | :02:43. | :02:50. | |
political elite is trying to respond to a difficult economic situation, | :02:51. | :02:53. | |
and don't think we should be surprised that there are rumours of | :02:54. | :03:00. | |
it at all between different people that try to solve the economic | :03:01. | :03:05. | |
situation in Italy. I don't worry too much. The financial market | :03:06. | :03:09. | |
doesn't seem to worry too much for the time being so I would suspect | :03:10. | :03:13. | |
that the political instability you were describing due to the hung | :03:14. | :03:21. | |
parliament and the last austerity measure is all bearing on the | :03:22. | :03:25. | |
current economic situation and political instability. The new | :03:26. | :03:28. | |
measures that Enrico Letta announced, we have mentioned some of | :03:29. | :03:33. | |
them. Do you think that they will help? To what extent will do get | :03:34. | :03:37. | |
Italy back on its financial beat? One of the problems with Italy is | :03:38. | :03:41. | |
that it is part of the European Union so there is not much a single | :03:42. | :03:44. | |
country can do. What we can hope is that in a sense Letta together with | :03:45. | :03:50. | |
other partners in Europe can respond to economic problems that are very | :03:51. | :03:58. | |
urgent in Italy as well as other countries. You mention high | :03:59. | :04:02. | |
unemployment, it is a problem across Europe. The Italian government on | :04:03. | :04:09. | |
its own can do little. The political instability is not helping but in a | :04:10. | :04:14. | |
sense it is a difficult situation and it is normal to expect them | :04:15. | :04:19. | |
political turmoil even the very high level of unemployment, the low level | :04:20. | :04:23. | |
of demand. Therefore, I would say that the best hope is that, for | :04:24. | :04:28. | |
instance, when Italy will take over on July the 1st the presidency of | :04:29. | :04:32. | |
the consulate Europe we will propose a way forward to solve those | :04:33. | :04:38. | |
economic problems. We appreciate your time. Professor of economics | :04:39. | :04:43. | |
based in the UK. As the day progresses in Italy, we will keep | :04:44. | :04:47. | |
you up to date. To Asia now, where Chinese PC giant | :04:48. | :04:50. | |
Lenovo has reported a 29% jump in the third quarter profit, way ahead | :04:51. | :04:53. | |
of expectations. The company's shares have been on a roller-coaster | :04:54. | :04:57. | |
in recent weeks as it has been on a major acquisition spree as it tries | :04:58. | :05:00. | |
to diversify away from shrinking PC market. Most recently, it bought the | :05:01. | :05:04. | |
Motorola mobile phone division from Google, the biggest ever technology | :05:05. | :05:11. | |
deal for a Chinese firm. Rico Hizon is in our Asia business hub in | :05:12. | :05:18. | |
Singapore. Always good to see you. This must be a sigh of relief, | :05:19. | :05:25. | |
today's news for Lenovo's shareholders? | :05:26. | :05:27. | |
Absolutely, record numbers, soaring demand for its laptops and mobile | :05:28. | :05:32. | |
devices in emerging markets. The Novo said it shipped a record 32.6 | :05:33. | :05:38. | |
million devices in the third quarter and it is nearly five devices every | :05:39. | :05:46. | |
second. However, the company executives are warning that its | :05:47. | :05:50. | |
future finances will be impacted by its recent purchase of IBM's another | :05:51. | :05:54. | |
end server business and motor roller. It paid more than $5 billion | :05:55. | :06:01. | |
to buy both businesses in January. Investors have basically questioned | :06:02. | :06:06. | |
these acquisitions, even that both businesses are currently | :06:07. | :06:08. | |
loss-making. Lenovo said in its conference call that it would take | :06:09. | :06:14. | |
up to five quarters, more than a year, to turn around the motor | :06:15. | :06:17. | |
roller business, which it bought from Google for about 2.9 billion US | :06:18. | :06:23. | |
dollars. The Chinese firm stressed that acquisitions are part of a | :06:24. | :06:26. | |
longer term strategy to move away from resilience on PC sales -- | :06:27. | :06:35. | |
reliance on PC sales. Thanks very much. Many of the team | :06:36. | :06:40. | |
are at the Singapore airshow at the moment, where Airbus has been | :06:41. | :06:46. | |
showing off its rival to Boeing's Dreamliner - the A350 XWB. It's a | :06:47. | :06:48. | |
long-range wide-bodied plane made from advanced materials, due to be | :06:49. | :06:52. | |
delivered by the end of this year. Airbus hopes the hi-tech plane will | :06:53. | :06:55. | |
tap into Asia's aviation boom, where a growing middle class are demanding | :06:56. | :06:58. | |
more comfortable - but still affordable - long haul flights. It | :06:59. | :07:05. | |
always looks good on these videos, doesn't it? Do don't see the | :07:06. | :07:08. | |
toddlers running around and the mayhem that we experience when we go | :07:09. | :07:11. | |
on flights. The BBC's Ashleigh Nghiem spoke to Kiran Rao, executive | :07:12. | :07:14. | |
vice president of strategy and marketing at Airbus. He told her | :07:15. | :07:17. | |
Asia was becoming the most important market for them. | :07:18. | :07:25. | |
It is a very exciting region. The Asia-Pacific is growing at around 7% | :07:26. | :07:31. | |
a year. We have demand, we believe, for around 11,000 aircraft over the | :07:32. | :07:33. | |
next 20 years, which represents about dirty 7% of the world aircraft | :07:34. | :07:41. | |
demand for the next 20 years -- about 37%. It is a huge market, the | :07:42. | :07:47. | |
most important for us going forward. The A350 has created a buzz but how | :07:48. | :07:50. | |
will it go up against the Dreamliner? It is the newest | :07:51. | :07:55. | |
technology airliner in the sky today. With the composite wings, we | :07:56. | :08:01. | |
have an aircraft that delivers excellent comfort and passenger | :08:02. | :08:05. | |
appeal but also delivers the lowest fuel burn and the best economics for | :08:06. | :08:10. | |
the airlines to operate. Explore burn is 25% less than current | :08:11. | :08:13. | |
generation air paint and up against the Dreamliner because it is a newer | :08:14. | :08:19. | |
generation aircraft, it has significant advantages. What lessons | :08:20. | :08:22. | |
have you learned from the problems that has faced this macro we learn | :08:23. | :08:29. | |
from our own mistakes on the A350, which was delayed, as you know. | :08:30. | :08:33. | |
Those mistakes were corrected and we have an aircraft that is on time, | :08:34. | :08:37. | |
which will be delivered this year to the first customer. And, yes, we saw | :08:38. | :08:44. | |
some of the issues that occurred on the Dreamliner and we were able to | :08:45. | :08:47. | |
anticipate some of those things and able to correct them in time for the | :08:48. | :08:52. | |
aircraft to go into service. Many say that the duopoly between parent | :08:53. | :08:58. | |
bus and the link is over. What is your strategy? -- between Airbus and | :08:59. | :09:05. | |
Boeing. All of the aircraft starting with small aeroplanes, 100 seaters | :09:06. | :09:10. | |
and above, but the A320 is the world 's most successful aircraft so | :09:11. | :09:16. | |
anybody who wants to challenge the A320 family has to produce a very | :09:17. | :09:21. | |
strong epic against us. So far what we see is that the A320 will | :09:22. | :09:25. | |
continue for many years and be very successful into the 20 13ths -- | :09:26. | :09:34. | |
2030s. Time Warner is being brought in a | :09:35. | :09:40. | |
$45 billion deal according to some reports in the press. They said the | :09:41. | :09:44. | |
takeover will be announced today and would combine the two biggest cable | :09:45. | :09:49. | |
operators in the United States would be subject to regulatory approval. A | :09:50. | :09:55. | |
smaller cable company had been pursuing Time Warner. We will look | :09:56. | :09:58. | |
out for that an announcement later today. | :09:59. | :10:03. | |
Market in Asia, as you can see not a good at all. Australia is in focus, | :10:04. | :10:11. | |
it is flat. It has got a headline number at today, unemployment | :10:12. | :10:15. | |
figures out, a ten year high in January, up to 6% now. Not good news | :10:16. | :10:21. | |
for Australia, the Australian dollar down on that news. I will see you | :10:22. | :10:23. | |
very soon. Many thanks to Sally for that. | :10:24. | :10:41. | |
The number of people signed up for new workplace pensions is | :10:42. | :10:42. |