:00:00. > :00:00.Now for the latest financial news with Sally
:00:00. > :00:18.Shares in Toshiba plunge in Tokyo, on reports it is poised to announce
:00:19. > :00:24.Our team in the region will have the latest.
:00:25. > :00:28.A difficult coalition is expected, following a general election that
:00:29. > :00:38.We assess what this means for Europe's fifth-biggest economy.
:00:39. > :00:48.In a minute we will take a closer look at negotiations over the trade
:00:49. > :00:54.The Japanese industrial giant that makes everything
:00:55. > :00:56.from home appliances to nuclear power equipment is seeing
:00:57. > :01:01.Local press is reporting the company will reveal
:01:02. > :01:09.This massive loss would be double the company's total net income
:01:10. > :01:11.for the previous two decades, and is related to
:01:12. > :01:17.an accounting scandal, layoffs, and sales of business units.
:01:18. > :01:21.With more than a 9% move in its share price, Toshiba needed to make
:01:22. > :01:24.a statement today saying it would hold a board meeting later in the
:01:25. > :01:27.day and discuss structural reform, adding that any measures it decides
:01:28. > :01:29.are expected to result in a significant deficit
:01:30. > :01:38.for the fiscal year, as indicated in the media reports.
:01:39. > :01:51.Sharanjit Leyl is in our Asia Business hub in Singapore.
:01:52. > :01:59.Tell us more. That's right, you have pretty much said all we know at this
:02:00. > :02:04.point because of course there were all these reports over the weekend
:02:05. > :02:08.saying that of course Toshiba is likely to post a fiscal year loss of
:02:09. > :02:12.more than $4 billion and of course you mentioned that the firm as well
:02:13. > :02:17.has issued this announcement saying they have no specific plans for an
:02:18. > :02:21.announcement today. Investors, of course, are watching very closely
:02:22. > :02:24.that board meeting which will be taking place in just a few hours. We
:02:25. > :02:30.expect an announcement perhaps there. There are expectations that
:02:31. > :02:39.they may then announce wider ranging restructuring plans including job
:02:40. > :02:43.cuts. Statement the board said they would discuss structural reforms. So
:02:44. > :02:47.we are watching that very closely. We know that Toshiba has been in
:02:48. > :02:50.trouble for a long time. That massive accounting scandal earlier
:02:51. > :02:55.this year revealed that for years the conglomerate had inflated
:02:56. > :02:59.profits to cover up losses. Of course, is part of the scramble to
:03:00. > :03:04.reform and restructure reports are saying the company may cut as many
:03:05. > :03:09.as 7000 jobs and the story was one of the most damaging accounting
:03:10. > :03:12.scandals to hit a 140 -year-old company. It forced its
:03:13. > :03:15.then-President and seven other top executives to resign and it was
:03:16. > :03:22.revealed that they have actually inflated profits by about $1.2
:03:23. > :03:27.billion since 2008. The global financial crisis, of course. As you
:03:28. > :03:30.say, Toshiba is a huge company which sells everything from rice cookers
:03:31. > :03:35.to nuclear reactors. A huge conglomerate. It doesn't help that
:03:36. > :03:42.all of this is coming two weeks after the securities and exchange
:03:43. > :03:51.watchdog said that Toshiba should be slapped with a record $60 million
:03:52. > :03:55.fine over that scandal. Of course, when we have the board meeting from
:03:56. > :03:59.Toshiba later we will update you with anything they might say about
:04:00. > :04:01.those losses or job losses and restructuring. Let's talk about
:04:02. > :04:03.Spain. Spain's governing conservative party
:04:04. > :04:05.has won the most seats in the general election, but has
:04:06. > :04:08.lost its majority and must now try to form a coalition, and that could
:04:09. > :04:11.spell trouble for the country's After five years of negative growth,
:04:12. > :04:14.Spain's economy emerged The recovery has since been fuelled
:04:15. > :04:18.by domestic demand, namely a rise And current Prime Minister Mariano
:04:19. > :04:22.Rajoy was leaning on the economic recovery as one of the pillars
:04:23. > :04:24.in his campaign for re-election. In the third quarter of this year,
:04:25. > :04:28.the economy expanded by 0.8%, the ninth consecutive quarter
:04:29. > :04:30.of growth in Spain. And unemployment has retreated
:04:31. > :04:32.from its record high of 28%. But it is still pretty lofty, at
:04:33. > :04:35.21%, making it the second-highest in This is a cause of concern for many
:04:36. > :04:51.voters and opponents of Rajoy's conservative Popular Party, who feel
:04:52. > :04:54.that many of the jobs created are But Mr Rajoy says it is
:04:55. > :05:09.only going to get better. He centred his re-election campaign
:05:10. > :05:12.on employment, promising two million Joining me now via webcam is Jan
:05:13. > :05:31.Gerhard, country analyst at IHS. Thank you for being on the
:05:32. > :05:39.programme. So no party has a majority, and this new, young,
:05:40. > :05:45.populist party Podemos has got quite a significant chunk of the votes as
:05:46. > :05:49.well. Sure, well, this party clearly has been a game changer for the
:05:50. > :05:58.Spanish political landscape. And as you just said, the party has just
:05:59. > :06:02.formed from the two... The country has reformed from a two party state
:06:03. > :06:06.to a multi-party framework. None of the parties have enough for a
:06:07. > :06:09.majority government and the building of the coalition will be very
:06:10. > :06:20.difficult. The big surprise of this election is that the Centrist
:06:21. > :06:24.Citizens' party performed worse than poll suggested so the incumbents and
:06:25. > :06:29.the right cannot go into a coalition with them. It is equally difficult
:06:30. > :06:34.on the left. As you just said, Podemos did very well. A lot of
:06:35. > :06:39.support came from party... From people who are very tired of the
:06:40. > :06:43.austerity measures which were opposed by the current Prime
:06:44. > :06:48.Minister -- proposed by the current Prime Minister. Tired of the
:06:49. > :06:52.austerity measures and also the young in Spain have been dealing
:06:53. > :06:57.with very high unemployment levels for them for many years. Youth
:06:58. > :07:01.unemployment there is just below 50% currently. Do you think that's why
:07:02. > :07:12.that particular party did well? Yes, absolutely. The young support
:07:13. > :07:17.Podemos, and also the other new party, Citizens party. But the high
:07:18. > :07:21.unemployment rates are a big factor in this election. What does this
:07:22. > :07:24.mean for the economy? I know it is hard to say at the moment when we
:07:25. > :07:29.don't know what the coalition looks like but presumably political
:07:30. > :07:35.instability will have a knock-on effect? Certainly, it is too early
:07:36. > :07:39.to say, as you just said, how the economy will develop after this
:07:40. > :07:45.election. If the Centre Right take the government, we would have seen a
:07:46. > :07:51.continuation of austerity reforms. Now we are not quite sure how this
:07:52. > :07:53.will develop. But uncertainty will certainly remain high. Political
:07:54. > :08:00.agreement will hopefully be found within the next few months. Thank
:08:01. > :08:03.you so much for your time. Good to get your analysis on Spain. We will
:08:04. > :08:05.talk about that further when we look at today's papers.
:08:06. > :08:08.Ukraine has not repaid a $3 billion debt owed to Russia, claiming Russia
:08:09. > :08:11.has refused to accept repayment terms already offered to other
:08:12. > :08:14.The moratorium means that Ukraine is likely to default on the debt.
:08:15. > :08:16.The countries have been at loggerheads since Russia annexed
:08:17. > :08:19.Crimea last year, and today Russian minister of economic development
:08:20. > :08:22.Alexey Ulyukaev is at the latest round of talks on deep and
:08:23. > :08:24.comprehensive free trade area of the EU-Ukraine Association
:08:25. > :08:27.Agreement. It was signed in April 2014, in response to the security,
:08:28. > :08:29.political and economic challenges faced by Ukraine.
:08:30. > :08:31.The EU unilaterally granted Ukraine preferential access to the EU market
:08:32. > :08:44.This season is in full swing in Ukraine. This is a Christmas and New
:08:45. > :08:51.Year's market in the centre of Kiev on the historic square. Further to
:08:52. > :08:55.the west, more serious events are taking place. Talks between
:08:56. > :08:59.Ukrainian, Russian and European Union officials to try and find a
:09:00. > :09:04.compromise to Russia's objections to the free trade deal between the EU
:09:05. > :09:09.and Ukraine. Now, the Europeans and the Ukrainians have said that the
:09:10. > :09:15.free trade zone will go into effect regardless of the outcome of these
:09:16. > :09:18.talks, will go into effect as planned on one January. Trade
:09:19. > :09:27.between Russia and Ukraine has decreased a great deal since the war
:09:28. > :09:30.broke out in Ukraine's East. Nonetheless, business between Russia
:09:31. > :09:36.and Ukraine still makes up a large part of Ukraine's economy. But
:09:37. > :09:40.economic relations between the two countries have deteriorated even
:09:41. > :09:45.further recently. The two countries have cut off all airline traffic
:09:46. > :09:50.between them and Russia is threatening to take Ukraine to court
:09:51. > :09:55.over a $3 billion loan which Ukraine says it cannot pay back to Russia.
:09:56. > :10:03.All this is taking place as Ukraine's economy remains in a very
:10:04. > :10:06.fragile state. And so any further adverse developments could have a
:10:07. > :10:12.very negative effect on Ukraine's economy. David Stern, who is in
:10:13. > :10:16.very negative effect on Ukraine's economy. David Stern, who is in Kiev
:10:17. > :10:22.for us. A really brief look at markets. The yen at its highest
:10:23. > :10:24.against the US dollar per week. And as mentioned, Toshiba one of the big
:10:25. > :10:32.losers. I will see you soon. The Government has been criticised
:10:33. > :10:35.for its handling of the recent The Parliamentary Business Select
:10:36. > :10:38.Committee says ministers were not alert enough to the effect
:10:39. > :10:42.a collapse in global steel prices