14/02/2014 World Business Report

gender for their profile page in the US. Those are the latest headlines

from BBC World News. Now for the latest financial news with the World

Business Report. As France struggles to avoid a new

recession, employers say big changes are needed to the French way of

life. Plus - Beijing's challenge to Airbus and Boeing.

Could a Chinese airliner be flying within a year? The latest from the

Singapore Airshow. Welcome to World Business Report I'm

Alice Baxter. In a moment, the latest inflation figures provide

more evidence of a slowdown in China. But first. We start with

Europe's fragile economic recovery. Over the next few hours, a slew of

official figures are expected to show the region's main economies

managing to grow, albeit very slightly, in the final three months

of 2013. But as that recovery gathers pace in Germany, the UK and

even bailed-out Spain. France has continued to struggle piling the

pressure on President Hollande. Its economy actually shrank in the three

months to September last year, raising fears it was slipping back

into recession. That's defined, of course, as two quarters in a row of

negative growth. It's expected to have avoided that fate, just, with a

return to growth of just 0.2% in the final quarter. We get those figures

in around an hour's time. President Hollande has staked his reputation

on trying to cut unemployment from its record levels. But so far he's

failed to turn the rising tide of jobless or to carry out the kind of

reform to the labour market that many employers say is needed. Our

European business correspondent Nigel Cassidy reports from Paris and

Lille. It is admired the world over but the

French way of life has become unsustainable. The official audit

office says state deficit stands at 30,000 euros per citizen and is out

of control. It was the mayor of this very city, north of Paris who

instigated the 35 hour week. Ironically, it is now these and

other measures to protect French workers which are arguably stopping

job creation and holding back economic growth. TRANSLATION: There

are too many subsidies so people are not motivated to work. I would like

to work in Switzerland or England because there is more money there.

In the UK or USA they have a recovery because people are working

and we are not. The President has asked employers like this retailer

to create more jobs but he says it is impossible in the face of

inflexible rules on everything from staff lavatories and time off for

some working. He says the system has stopped wealth creation. When you

have yet possibility to stay at home, not working. You are not

obliged to what, you accept to work one hour. We must make an effort to

day, in Spain, they have made cuts. Retailers say if anything, things

are getting worse. Take store opening hours. This cosmetic store

in Paris is used to be open until midnight. But now, they are using

the court is to force landmark stores to follow the letter of the

law and closed early. French government is showing no signs of

forcing a change. To the Singapore Airshow now. If

you've been watching our coverage this week you will know it has been

dominated once again by the world's two big plane manufacturers, Airbus

and Boeing. But they could soon have a new rival: the state-owned

Commercial Aircraft Corporation of China - known as Comac. It hasn't

yet manufactured a commercial aeroplane, these models are all they

have to show at the moment. But this time next year all that could have

changed. Our reporter Ashleigh Nghiem went to find out what their

plan is. Let's be clear, this lane was not

ill to buy China. Comb Comac is hoping to target the market

of small, domestic planes. Comac believes it will have its first

plane ready within years. TRANSLATION: We are currently

working on a company that designed. We are in the trial production

stage. Last year, we started first construction of the first

generation. We hope to reach the assembly stage soon. This is what

Comac's first plane will look like. Tens of millions of dollars have

been invested into developing this plane and Comac says it has 400

orders from 16 firms. The interest is coming from domestic airlines in

China. Comac says it also has deals in the pipeline with firms in

Singapore and the United States. Some question if the aircraft will

take flight even then. Building an aeroplane is not an easy task and

Comac admits it lacks the experience. Analysts say that is not

Comac's only challenge. It raises doubts. Comac needs to work hard to

get some Western faces on board who have experience in rolling out

programmes, rather than taking on the challenge is themselves. That

will allow them to attract some investors. That may explain why

orders have slowed to a trickle. The firm has set a modest target of just

30 orders this year but like all plane makers, Comac's reputation now

depends on its ability to deliver on time.

Let's head to China now. The politically sensitive issue of

inflation. The latest figures will provide relief to shoppers

everywhere. Consumer price rises were at a seven month low in

January. Producer prices have now fallen over two years. Let's get

some analysis from Rico Hizon in Singapore. Explain the numbers. If

you take a look at the numbers, we are seeing challenging times a head

for the mainland economy. To a half percent in January and pad to a year

ago levels, prices came in flat despite a 3.7% gain in food prices

which included both the Western and Chinese New Year is. When you speak

with economies they say inflation is not going to be an issue in the

mainland this year. The data leaves room for the government to stimulate

economic growth if it drops to low. Factory orders which we mentioned

earlier or producer prices fell 16% and that is a decline over 23

months. Analysts say these readings are just domestic demand remains

weak in China. Which does not bode well for economic expansion in 2014.

A so-called curve on waste at the dining table. China's leadership has

issued a raft of bands ranging from fancy bank which to expensive gift

in an effort to deter endemic graft which causes widespread public

anger. The lunar year was the first in ten years. The inflation outlook

for the coming months will remain subdued which could impact economic

growth. We know domestic consumption is something that the Chinese

Administration want to see boosted. In other news. Anglo American

becomes the next of the global mining giants to report results

later this Friday - after rival Rio Tinto reported a jump in profits on

Thursday. Investors will be looking in particular at Anglo's platinum

operations, the world's biggest, which have been disrupted by

damaging strikes in South Africa. That and lower prices for some

commodities are expected to weigh on profits. A quick look at the market

is in Japan. Japan's Nikkei share average reversed early gains and

fell into negative territory on Friday, as a rally inspired by gains

on Wall Street failed to attract follow-through buying from

investors. Many thanks. NHS hospitals in

England are to be given management advice from the man credited with

turning round the fortunes of