:00:00. > :00:00.appearing to bite Chiellini. It happened at the end of their 1`0 win
:00:00. > :00:08.in Natal, that saw Italy exit the tournament. Those are the latest
:00:09. > :00:09.headlines from the busy world and. Now for the latest financial news
:00:10. > :00:26.with Sally. `` from BBC World News. First they were up, then they were
:00:27. > :00:33.down. Why the latest data on US growth could make dismal reading. No
:00:34. > :00:40.oil, no gas, no cash. The conundrum facing Libyans as they go to the
:00:41. > :00:47.polls. Hello and a very warm welcome. You're with World Business
:00:48. > :00:54.Report. I'm Sally Bundock. Also calls to overhaul Boeing's flood
:00:55. > :01:02.controls after last year's Asiana Jet crash. It was a tough winter for
:01:03. > :01:08.the world's biggest economy, the weather stopping many people
:01:09. > :01:14.spending. Output fell by 1% at the start of the year as a result. But
:01:15. > :01:18.things could actually be worse than originally thought. Final data on
:01:19. > :01:27.Wednesday could show the economy shrank by 1.7%. How worried should
:01:28. > :01:32.we be? This man designs and manufactures
:01:33. > :01:37.children's furniture. For this small Brooklyn company, the start of the
:01:38. > :01:40.year was bleak. Orders didn't return after the usual dip over the
:01:41. > :01:46.holidays. The drop in sales was pretty drastic and normally it picks
:01:47. > :01:54.up again mid`January, but this year it took until April. The US economy
:01:55. > :01:59.shrank in the first three months of this year, hurting businesses like
:02:00. > :02:02.this and raising fears the US recovery was fading. Still many
:02:03. > :02:07.economists say it is misleading to suggest America is close to
:02:08. > :02:10.recession. Yes, it was a surprising slowdown but it did reflect the fact
:02:11. > :02:16.that in the second half of last year we saw a strong pickup in growth
:02:17. > :02:19.that was driven more by businesses restocking than it was necessarily
:02:20. > :02:24.final demand, and that inevitably meant you had to have some slowdown
:02:25. > :02:32.at the start of the year. But even if the optimists are right and
:02:33. > :02:34.America is bouncing back, economists from the IMF to Wall Street have
:02:35. > :02:38.been forced to lower their growth forecasts for the year. For many
:02:39. > :02:43.Americans this report will feel like they've taken one step forward and
:02:44. > :02:45.two steps back. But there are signs that the world's largest economy is
:02:46. > :02:50.making progress, not least because of the improvement in the US labour
:02:51. > :02:58.market. Still it is a reminder that the path to recovery doesn't always
:02:59. > :03:03.follow a straight line. When we get the number for the US
:03:04. > :03:07.growth we will let you know. But let's talk about what's happening in
:03:08. > :03:11.Libya because they do go to the polls there to elect a new
:03:12. > :03:15.parliament today, conflict between militia groups and the government
:03:16. > :03:20.mean Libya is now earning next to nothing from its main sources of
:03:21. > :03:26.income, oil and gas. The government debt is ballooning and the huge
:03:27. > :03:31.number of bank robberies by militia has started a cash crisis. Can a
:03:32. > :03:38.newly elected Congress do anything to repair all of this?
:03:39. > :03:43.In September 2011, only weeks after the overthrow of Colonel Gaddafi,
:03:44. > :03:47.Britain's air force flew into Triple`E hundreds of millions of
:03:48. > :03:52.dollars in bank notes. Estate reserves which Libya had been
:03:53. > :04:01.holding abroad `` Triple`E. Now the government is burning through all
:04:02. > :04:05.this cash. Since militias closed the oil export terminals on the east
:04:06. > :04:09.coast of Libya, government revenues have fallen almost two zero. But
:04:10. > :04:18.payoffs to armed factions have pushed government spending to over
:04:19. > :04:21.$50 billion a year. `` to zero. When the militias demand payment the
:04:22. > :04:24.government is left with little choice but to comply. We have seen
:04:25. > :04:26.the militias surrounding the General Congress, kidnapping the Prime
:04:27. > :04:31.Minister, they can impose whatever spending they want on the
:04:32. > :04:35.government. There are no fewer than 1700 militia groups in Libya, and
:04:36. > :04:40.they need to fund their operations. To do this many rob banks. Nowadays
:04:41. > :04:47.the central bank is scared to send out money to bank branches in the
:04:48. > :04:51.provinces. This has led to acute cash shortages, affecting both
:04:52. > :04:54.households and firms. This is leading to a state of financial
:04:55. > :04:58.paralysis at a working level. Companies, even quite large ones,
:04:59. > :05:02.are asking their import used to stay at home, not only because they can't
:05:03. > :05:08.play them but they can't do the normal business transactions they
:05:09. > :05:15.need to do `` asking their employees. The elections on
:05:16. > :05:18.Wednesday are meant to produce a new government that can make a
:05:19. > :05:22.settlement with the militias and restart oil exports. But a low voter
:05:23. > :05:27.turnout would make its mandate very questionable.
:05:28. > :05:32.A terrible plane crash that killed three schoolgirls and injured dozens
:05:33. > :05:37.of others has prompted a review of flight controls. Sharanjit Leyl is
:05:38. > :05:42.in our Singapore bureau with the details. Tell us more about what
:05:43. > :05:46.this means for the airline. That's right, Sally. US investigators
:05:47. > :05:50.essentially have concluded their 11th month investigation into that
:05:51. > :05:54.crash last delight of as Jana's treble seven. They said pilot
:05:55. > :06:00.errors, inadequate training and confusion about the airport a
:06:01. > :06:11.plain's automated controls were all to blame. The NTSB said the speed
:06:12. > :06:15.protection system on the Boeing 777 200 ER should be studied and mainly
:06:16. > :06:21.redesigning. That crash in San Francisco last July killed three
:06:22. > :06:25.people and injured more than 180. The NTSB is making about two dozen
:06:26. > :06:28.recommendations to Asiana, Bahrain, the federal aviation agency, the
:06:29. > :06:32.firefighters, and the San Francisco city and county, they have called
:06:33. > :06:36.mismanagement as the cause of the crash but Boeing and Asiana should
:06:37. > :06:40.revise flight training manuals to better explain the auto throttle
:06:41. > :06:44.functions. All of this is likely to have a negative impact on the
:06:45. > :06:50.fortunes of the South Korean airline, South Korea's largest
:06:51. > :06:55.carrier. Its shares are down marginally today. Asiana has
:06:56. > :06:57.acknowledged the aged PSV has recognised the factors that
:06:58. > :07:03.contributed to the accident, including the complexities around
:07:04. > :07:08.the auto throttle system `` NTSB. Boeing is likely to see some fallout
:07:09. > :07:11.in its business, but it respectively disagrees with the findings about
:07:12. > :07:18.the automated system. Boeing's shares closed down with the broader
:07:19. > :07:23.market by over 1%. Thanks very much. Let's have a look at some other
:07:24. > :07:27.business stories and South Africa's longest and costliest strike is over
:07:28. > :07:30.after five months. Platinum miners are returning to work after the
:07:31. > :07:34.three biggest firms, Anglo American Platinum, Impala Platinum and
:07:35. > :07:38.Lonmin, signed a three`year wage deal with the miners union. After so
:07:39. > :07:41.much time away from the job, the miners will have to undergo training
:07:42. > :07:48.and health checks before the mines can return to full production. Like
:07:49. > :07:54.a Rolling Stone gathered no Moss at an auction in New York on Tuesday.
:07:55. > :07:56.Bob Dylan's handwritten lyrics for the classic rock song fetched $2
:07:57. > :07:58.million in a Sotheby's rock memorabilia sale. The new owner is
:07:59. > :08:05.said to be a fan from A new regulation aimed at stubbing
:08:06. > :08:07.out smoking comes into effect in Indonesia this week. It forces
:08:08. > :08:09.manufacturers to put graphic health warnings on cigarette packets.
:08:10. > :08:12.Indonesia is a major tobacco producer, and there are more than 50
:08:13. > :08:16.million smokers there. And it appears that the new laws are yet to
:08:17. > :08:18.have an effect on demand for cigarettes, as reporter Kiki
:08:19. > :08:31.Sriregar found out when she spoke with smokers on the streets of
:08:32. > :08:35.Jakarta. If you are a smoker in Indonesia,
:08:36. > :08:42.you can light up just about anywhere. You can smoke on the
:08:43. > :08:48.streets... In parks, and public places. Even in some government
:08:49. > :08:54.offices. In Indonesia almost half the male population spoke everyday.
:08:55. > :08:58.The Indonesian government has tried to decrease the number of smokers
:08:59. > :09:00.but they haven't been successful. From this week Indonesian cigarette
:09:01. > :09:05.makers have to start warning smokers of just how unhealthy their habit
:09:06. > :09:10.is. Cigarette packets will be required to have graphic warnings
:09:11. > :09:15.which cover at least 40% of the package. But there was little
:09:16. > :09:21.evidence of those images at stalls in Jakarta today. The smokers here
:09:22. > :09:24.have no idea about the new rules. TRANSLATION: I don't think it will
:09:25. > :09:30.make a difference as long as people still sell single stick cigarettes,
:09:31. > :09:33.because the majority of Indonesian smokers are from poor backgrounds
:09:34. > :09:40.and they tend to buy single sticks and not packs. I know a bit about
:09:41. > :09:44.this new rule but those images won't have an impact because smoking is an
:09:45. > :09:47.addiction for me. I would rather go hungry than not smoke. When I don't
:09:48. > :09:53.smoke I can't think so it won't make a difference to me. Cigarettes are
:09:54. > :09:57.extremely cheap in Indonesia because tobacco taxes are so low income
:09:58. > :10:02.Paris and to other countries in South East Asia. Activists say
:10:03. > :10:06.Indonesia needs to raise taxes on cigarettes, but that's challenging
:10:07. > :10:14.because the tobacco lobby is one of the most powerful in the country.
:10:15. > :10:21.The markets, a flat day I have to say, slightly down in Asia so far.
:10:22. > :10:27.Japan down by 0.6%. To the close in the United States and the oil price,
:10:28. > :10:30.oil creeping up slightly but Brent crude down a little bit, the
:10:31. > :10:44.situation in Iraq keeping investors busy. I will see you soon.
:10:45. > :10:45.Thanks to Sally for that. The papers in a moment but first, the